Transition
Transition to retirement income streams
Did you know you don't even have to be retired to take an income stream?
If you have reached your preservation age you can access a Transition to Retirement Income Stream while you are still working. These income streams work exactly the same way as the standard AvSuper income streams, with two extra rules:
- you can only with draw up to 10% of your account balance in a year
- you can not make lump sum withdrawals
How do I get a transition to retirement income stream?
To start an AvSuper income stream, just complete a Retirement Income Stream Application and send it to us. If you are under 60, you also need to complete a Tax File Number Declaration (from the Australian Tax Office).
Current accumulation members: We will simply reduce your account balance by the amount that you ask to be transferred to an income stream. You cannot add to an income stream account and, therefore, any employer contributions or contributions you may be making would continue to go to your accumulation account.
Defined benefit members: We will reduce your accrued benefit multiple to take account of the amount you asked to be transferred to an income stream account. Your future benefit accrual would continue in the standard way.
Defined benefit members may use an existing or new accumulation account to start their income stream if they prefer.
New members: purchase an income stream by cheque/direct deposit.
What about when I retire?
Once you have retired, you have a choice:
- continue your income stream without the 10% and lump sum limits
- take your income stream balance as a lump sum
- merge your income stream and superannuation balances in an AvSuper accumulation account
- merge your income stream and superannuation balances to start a new income stream
Want to know more about your transition to retirement options? Call AvSuper on 1800 805 088 or watch a short webinar on Transition to Retirement Income Streams from our financial planning partner.
