How a pension works
You can invest your super in a Club Plus Pension to receive tax-effective regular income in retirement. Money is invested in your choice of investment options , with a pension income payable to you as long as there is enough money in your Club Plus Pension account to make the payment.
A superannuation pension gives you the flexibility to choose how much pension you receive each year (subject to Commonwealth Government limits). You may also take part of your pension account balance as a lump sum (unless it is a Transition to Retirement Pension, in which case you must meet a condition of release). Lump sum payments may impact on the ability to sustain your pension over the long-term. 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 as a reversionary pension.
Your account balance will vary depending on:
- the amount of pension payments paid to you;
- the investment earnings (either positive or negative) of your chosen investment option(s);
- any lump sum withdrawals made from your pension, and;
- fees deducted.
You can change your nominated pension amount at any time, provided you receive at least the minimum amount for any given year. We require five business days to process a change to your nominated pension amount, so allow at least that much time if you wish it to be effective for your next payment.
If your minimum pension amount for a financial year is not reached by the date of your last payment, you will receive the outstanding amount as an additional payment.
For Transition to Retirement pensions, if the maximum pension amount is reached during the financial year, the relevant payment will be reduced to ensure the maximum amount is not exceeded. No further pension payments can be made to you for that year.
Club Plus Super makes pension payments from your account until your account balance is nil. The length of time your pension payments continue depends on the value of your investment, the amount of pension income you take each year, and the investment earnings generated from the investment option(s) you choose. There is no guarantee that your pension payments will continue for life.
For more information, refer to the Pension PDS or contact our Pension Hotline on 1800 204 194.