Top up your income or grow your super
Tax savings
Zero tax on your income payments if you’re over 60. Concessional tax on your income payments if you’re under 60.
Set payment frequency and amount1
Ease into retirement or save tax as you grow your super
Depending on your situation and goals, a Transition to retirement income account may help you:
Ease into retirement
- Receive regular payments to top up your income as you reduce your work hours
Continue to grow your super
- Receive regular income payments to replace the salary sacrifice contribution amounts you make into your super account whilst working full time
- Save tax now plus grow your super for retirement due to super's concessional tax treatment
No matter what you use it for, the Transition to retirement income account gives you the flexibility to:
- Set your payment amount and frequency1
- Pay zero tax on payments if you're over age 60 (and concessional tax if you're under 60)
- Stop income payments (subject to having received the annual minimum legislated amount) and close your income account at any time2
- Easily move your account to a Retirement income account when you fully retire
Talk to an Australian Retirement Trust financial adviser to get started today
Or call us! We're here to help: 13 11 84
Find out more about our Super Savings Transition to retirement income account
What is a Transition to retirement income account?
A Transition to retirement income account could provide you with regular income payments to:
- Top up your income as you reduce your working hours on your way to full retirement, or
- Receive regular income payments to replace the salary sacrifice contribution amounts you make into your super account whilst working full time.
Who is a Transition to retirement income account for?
A Transition to retirement income account is generally for members who have reached their preservation age, are still working and are looking to top up their income.
How does it work?
Once you’re eligible, you start by moving some of your super from your super accumulation account (such as an Australian Retirement Trust Accumulation account) to a Transition to retirement income account.
You will then start receiving regular payments from your Transition to retirement income account into your bank account so you can still live on a comfortable amount of take-home pay.
Any regular income payments are tax free if you’re over age 60 (and concessionally tax if you’re under 60).
Your Transition to retirement income account will continue to stay invested and keep working for you. You can choose your income payments and when you want to receive them, provided the total each year meets the minimum and maximum amounts set by the government.
What is my preservation age?
The government “preserves” your super by restricting when you can access your money. This means any money you invest in super stays in super, until you at least reach your “preservation age”. Your preservation age depends on your date of birth:
| When were you born? | Preservation age |
|---|---|
| Before 1 July 1960 | 55 |
| 1 July 1960 - 30 June 1961 | 56 |
| 1 July 1961 - 30 June 1962 | 57 |
| 1 July 1962 - 30 June 1963 | 58 |
| 1 July 1963 - 30 June 1964 | 59 |
| After 30 June 1964 | 60 |
What income payments do I need to take?
As a result of the COVID-19 crisis, the government has reduced the minimum annual payment amounts for superannuation pensions like Australian Retirement Trust’s Transition to retirement income account. This is intended to help retirees, and those close to retirement, to manage the impact of volatile financial markets on their retirement savings.
You'll be able to choose how much income to take and when you wish to take it, provided a minimum amount set by the government is withdrawn each year. You can withdraw as much as you like between the minimum and maximum annual payment amounts.
| Your age | Standard annual minimum payment | Reduced annual minimum payment applicable for 2019-20, 2020-21 and 2021-22 | Maximum payment |
|---|---|---|---|
| Preservation age to 64 | 4% | 2% | 10% |
Can I still contribute to my super?
Yes, you can continue to make contributions to your super. In fact, there may be favourable income tax advantages for you to do so, depending on your age and taxable income.
You will need to transfer a minimum $60,000 from your Accumulation account to your Transition to retirement income account when you open it. There are no maximum restrictions on the amount you can transfer from your Accumulation account to a Transition to retirement income account (although you will need to keep some balance in your Accumulation account if you, or your employer, are still making super contributions).
Is there a cap on the amount I can have in the account?
There is no cap on the amount you can have in a Transition to retirement income account. However, when you meet a condition of release such as permanently retiring, changing employers after age 60 or reach age 65, your Transition to retirement income account will change to a Retirement income account. Note that setting up a Transition to retirement income account may affect your eligibility for social security benefits so it’s important you check with your social security provider (e.g. Services Australia) or seek financial advice before making any decisions.
How will my balance be invested?
Choosing the right investment option for your Transition to retirement income account can make a big difference to your retirement income.
What fees will I pay?
Our administration fee for our Transition to retirement income account is $1.50 per week plus 0.10% p.a. of your balance (up to the first $800,000). Investment fees and costs also apply.
Will I still get the government Age Pension?
To receive the government Age Pension, you need to reach the age pension age (currently 66 and 6 months) and have income and assets below certain thresholds. Your super accounts (whether an Accumulation account or Transition to retirement income account) will count towards both the Age Pension income and assets tests.
Seeking financial advice on your personal situation can help you work out if you’ll still be eligible for full or part of the government Age Pension once you activate your Transition to retirement income account.
How do I get started?
If any of the above situations sound like you and you’re eligible, you can activate your Transition to retirement income account quickly and easily in Member Online or complete the Income account request form.
Talk to your financial adviser or contact Australian Retirement Trust
Outstanding value pension fund offering
Australian Retirement Trust has adopted the same products, services and investments as Sunsuper. Sunsuper proudly held Canstar’s highest 5-Stars Outstanding Value Account Based Pension rating since 2015. Sunsuper was also a finalist for SuperRatings' Pension of the Year 2021, and Sunsuper’s Income accounts received the highest possible ratings from SuperRatings, Chant West and The Heron Partnership.3
1. The Government has set a minimum amount to be withdrawn each year. You must have at least taken your minimum income for the financial year before you can stop your payments and close your account. Members aged 64 or less who open a Transition to retirement income account can withdraw a maximum of 10% each year.
2. Stop your income payments and close your account at any time, subject to having already received the minimum legislated income payments.
3. + SuperRatings. The rating is issued by SuperRatings Pty Ltd ABN 95 100 192 283 AFSL 311880 (SuperRatings). Ratings are general advice only and have been prepared without taking account of your objectives, financial situation or needs. Consider your personal circumstances, read the product disclosure statement and seek independent financial advice before investing. The rating is not a recommendation to purchase, sell or hold any product. Past performance information is not indicative of future performance. Ratings are subject to change without notice and SuperRatings assumes no obligation to update. SuperRatings uses objective criteria and receives a fee for publishing awards. Visit superratings.com.au for ratings information and to access the full report. © 2021 SuperRatings. All rights reserved. + Chant West. For further information about the methodology used by Chant West, see www.chantwest.com.au.
For ratings and awards information, visit our Ratings & awards page.