Club Plus Super’s Retirement Pension, also known as an allocated or account-based pension, is commenced using the funds from your super account and is designed to provide you with a tax-effective regular income stream in retirement.
In order to access your super money and start a Retirement Pension account you must meet one of the following (unless you’re taking advantage of the TTR) option.
Conditions of release:
- have reached your preservation age and permanently retired
- have reached age 60 and have stopped working
- have reached age 65
- be totally and permanently disabled
- be terminally ill.
A Retirement Pension gives you the flexibility to choose how much pension you receive each year (subject to the Commonwealth Government limits) and the frequency of those payments (twice-monthly, monthly, quarterly, six-monthly or annually). You may also take part of your pension account balance as a lump sum at any time, although this may impact on the ability to sustain your pension over the long-term.
Your money is invested in your choice of investment options, with a pension payable to you as long as there is enough money in your Retirement Pension account to make the payment.
Upon your death, the balance of your account is payable to your dependants or legal personal representative, or you can elect for your pension to continue to be paid to your spouse (reversionary pension).
Preservation age table
|Date of birth||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|
|From 1 July 1964||60|
Commonwealth Government Minimum Pension Payment Limits
|Age||Legislated Minimum Percentage||
1 July 2011 - 30 June 2012
|95 or older||14%||10.5%|
Temporary relief of minimum pension drawdown rules
Please note: On 30 June 2011, the Federal Government extended the relief from the minimum pension draw down rules until the start of the 2012/13 financial year.
The minimum draw down percentages as seen above have now been given a 25% reduction, so for example, a 64 year old would be required to draw 3% of their account balance as a minimum pension payment instead of the standard 4%.