Pension division

Pension division

AustChoice Super offers a transition to retirement (TTR) pension and an account-based pension to help existing members needs.

Transition to retirement pension

As an existing member, if you are aged between 55 and 64, a TTR pension can be an effective way to boost your super savings in the lead-up to retirement or maintain your income as you wind down and work less. The choice is up to you and will depend on your personal circumstances. Whichever decision you make, your AustChoice Super account will make it easy to implement.

AustChoice account-based pension

An account-based pension is an investment that allows existing members to use your superannuation monies to provide regular, flexible and tax-effective income when you retire. Investment earnings are not taxed within the account. And if you're over 60, pension payments from your account will be tax free as well. If you're under 60, PAYG income tax will be deducted from your pension payments and paid by AustChoice Super to the ATO.

How often payments are made

Your pension can be paid:

  • monthly
  • quarterly
  • half yearly
  • yearly.

Your payments are made until the date of your death or when your account is reduced to nil.

Lump sum withdrawals (commutations)

The option to make lump sum withdrawals are not normally available from a transition to retirement pension..

Taxation of your pension account earnings

Investment earnings on your pension assets are tax-free.

Withdrawals (commutations)

A lump sum withdrawal that is not rolled over or transferred to another complying superannuation fund, rollover or pension fund may be subject to tax. How your lump sum withdrawal is taxed will depend on its components and your age. This withdrawal may also affect Centrelink and Veterans' Affairs entitlements.

Pension payments

If you are age 60 or over, your pension payments will be paid tax-free and you will not need to provide details of these payments in your tax return.

If you are under age 60, pension payments (less the proportion that is deemed to be tax-free), are treated as personal income and are assessable for taxation purposes. Tax will be deducted from each pension payment on a PAYG withholding tax basis, plus Medicare Levy. Please read the notes on the reverse of the Tax File Number Declaration form about claiming of the tax-free threshold. A PAYG Payment Summary will be issued each year. You may also be entitled to a 15% tax offset on the amount of your annual pension payments.

The tax information provided above is a brief summary only. It is based on taxation laws that were current at the time of printing the Product Disclosure Statement. Further information is available from the Australian Taxation Office (ATO). It is strongly recommended that you seek advice from a financial adviser.