Super Income Stream (Allocated Pension) and Transition to Retirement

Whether you are retiring or transitioning to retirement (see below), you may be able to rollover your super from your accumulation super fund into a super income stream. You will receive regular income payments from your super income stream, and like any other investments the returns received will be subject to market movements.

There is no tax on the earnings (such as interest and dividends) in a super income stream. For people aged 60 and over there is no income tax on either lump sum withdrawals or on the regular income payments (though taxes still apply to the taxable component of death benefit lump sums to certain beneficiaries). Payments for people under age 60 are also favorably treated.

If you are over 55, you can start to receive payments from your super fund, even if you are still working:

Switch to part-time work or a less demanding role without having to reduce your income. Ease into full retirement by 'topping up' your income needs with regular payments from a super income stream; or
Significantly increase your current super balance, gaining the tax benefits by salary sacrificing larger sums into super and supplementing your income with regular payments from a super income stream.

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