Transition to retirement

Even if your retirement is some years off, you may be able to access some of your superannuation while you’re still working. Here’s how.

Transition to retirement

If you’re over 55, transition to retirement lets you to take some of your superannuation as a pension while you’re still working. It’s a great way for you to ease into your retirement and take advantage of some of the tax concessions available to pensions.

All you need to do is nominate how much super you’d like to transfer to a UniSuper pension. This pension can then be suited to supplement your other income.

If you meet the eligibility criteria you can 'transition to retirement' with any UniSuper pension:

• Indexed Pension (both commercial rate and those based on Trust Deed factors), or
• Flexi Pension.

While you're still working, your own and your employer's superannuation contributions will continue to be paid into your UniSuper super account.

The rules for transition to retirement provisions are:

• You must have reached your preservation age (but be under 65) and still be in the workforce. The government has not specified the minimum or maximum hours you must be working.
• You can only take your super as a non-commutable pension, not as a lump sum.
• If you choose a Flexi Pension you can only take a maximum of 10% of your account balance annually while you are in the transition to retirement phase. You can only convert it to a lump sum:
  • once you meet a condition of release, such as permanent retirement or reaching age 65
  • to return the balance to your accumulation component if you are still working, or
  • to purchase another transition to retirement pension.
• You must have a minimum account balance of $25,000 to purchase a UniSuper pension (except for Indexed Pensions based on Trust Deed factors).
• If you only use part of your UniSuper accumulation component for a transition to retirement pension, you must leave a minimum balance of $1,000 in your account.

Please note: Your super account and your insurance cover may change if you take a pension under transition to retirement provisions.

How do I apply for a pension under transition to retirement?

Just complete the appropriate Flexi Pension or Indexed Pension form contained in the Product Disclosure Statement, Your guide to pensions.