Transition to Retirement income streams
The Trustee recognises that the removal of the tax free investment earnings on assets supporting transition to retirement (TTR) income streams represents a significant change to the former tax free status of TTR accounts and reduces their benefit to our members. The Trustee also considered the additional cost and complexity of continuing to offer TTRs to members under the new laws.
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 an AvSuper Transition to Retirement Income Stream while you are still working. These income streams generally work the same way as the standard AvSuper income streams, other than:
- you can only withdraw up to 10%* of your account balance in a year
- you can not make lump sum withdrawals
- earnings are subject to a 15% tax from 1 July 2017
Your transition income stream can provide you with an income while you reduce your regular income and/or increase contributions to your general superannuation account. Read our fact sheet for more detail.
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 (available from Post Offices or call us for one).
Current accumulation members
- We will simply reduce your account balance by the amount you ask to transfer to an income stream. You cannot add to an income stream account and, therefore, any employer or personal 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 instead choose to use an existing or new accumulation account to start an income stream.
- Purchase an income stream by cheque or direct deposit. Our Super Contributions page details how to make payments.
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?
* Some exceptions apply, such as a family law split.