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Flexi Pension

What is a Flexi Pension?

A Flexi Pension can be a tax-effective way to receive a regular income when you retire. It offers you the flexibility to structure your investment to suit your personal needs and provides a tax-free income from age 60.

You choose your level of annual pension income (subject to certain minimum limits), and pension payments continue until your Flexi Pension account balance reduces to zero.

A Flexi Pension can also be used to transition to retirement (TTR). Under the TTR rules, you can move gradually from full-time work to retirement and receive income from your Flexi Pension while you are still working (subject to an annual maximum limit).

To start a Flexi Pension under the TTR rules, you must have reached your preservation age but be under age 65 and still be in the workforce.

Here's what you need to know about UniSuper's Flexi Pension:

What is the minimum investment for a Flexi Pension?

A Flexi Pension requires a minimum investment of $25,000. You can use all or part of your UniSuper benefit, and can roll over any benefits from other super funds into your UniSuper super account before the pension commences. There is no entry fee for a Flexi Pension.

Once your Flexi Pension is established, you cannot contribute any additional amounts into your pension account. You can, however, open another Flexi Pension if you have a further $25,000 or more to invest.

Can I choose the level of my annual income?

With a Flexi Pension, the government sets a minimum amount of pension income that you must receive from your account. There is currently no maximum level.

The annual minimum is based on your age and your account balance. It is measured at the start of your pension and then, on 1 July each year.

Each financial year, you choose the level of annual pension income you want as long as it is at or above the minimum amount.

If you take a Flexi Pension under the TTR rules, your annual pension income is limited to a maximum of 10% of your account balance at the start of each financial year.

Can I choose how often my Flexi Pension is paid?

You can choose when you receive your pension payments – fortnightly, monthly, quarterly, six-monthly or annually. Your pension payments will continue until your Flexi Pension account balance reduces to zero.

Can I choose how my Flexi Pension is invested?

You decide how your pension account is invested, and UniSuper provides a wide range of different investment options for you to choose from.

When deciding how to invest your pension account, it’s important to choose investments that you are comfortable with and which best suit your investment needs. To do that, you’ll need to understand how the investment options work.

Our Investing for the future booklet provides important information about UniSuper’s Pre-Mixed and Single Asset Class investment options. The booklet explains how these options are invested, their different asset mixes and the different levels of risk associated with them.

You should also read the Your guide to pensions product disclosure statement (PDS).

Can I make lump sum withdrawals?

You can make lump sum withdrawals of $2,000 or more from your Flexi Pension at any time. Any lump sum withdrawals you make will be subject to tax if you are under age 60.

If you take a Flexi Pension under the TTR rules, lump sum withdrawals are only permitted in very limited circumstances. These are detailed in the Your guide to pensions PDS.

How do I apply for a Flexi Pension?

To apply for a UniSuper Flexi Pension, simply complete and return:

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