Retirement Income Strategy

Flexi Pension is an account-based pension that provides you with a regular income, while your funds continue to generate investment returns. You can choose how much and how often you’re paid (subject to government limits). Except for Transition to Retirement pensions, you can also withdraw additional lump sums whenever you need. Flexi Pension also lets you choose how your money is invested. You can pick from 16 different investment options across various asset classes. You can choose pre-mixed or sector specific investment options to build a portfolio that suits you.

How long a Flexi Pension will last depends on the amount you initially invest, your annual income payments and lump sum withdrawals, and how your chosen investment options perform over time. There is a risk that income payments may cease (or reduce) if you access the money too quickly, or investment returns are poor.

The key feature of a Flexi Pension is the regular, flexible, and tax-effective (for most people) income from your super – and you can access your money when you need.  You can use this product as a building block for a balanced retirement solution. Given its flexibility with investment and draw down options, Flexi Pension can also be used to maximise retirement income and manage risks at a more personal level.

A Commercial Rate Indexed Pension (CRIP) gives you the security of a regular income for the rest of your life. Payments are indexed each year in line with increases to Consumer Price Index (CPI) and are not affected by the fluctuation of investment markets. You can choose fortnightly or monthly income payments for the rest of your life.

A Joint Life option is available if you want your spouse to receive your payments in the event of your death. This means the payments will continue for the lifetime of your surviving spouse. 

A CRIP will protect you from all risks including longevity risk, investment risk, and inflation risk, so you have a sustainable and stable retirement income for life. The CRIP may also provide a higher Age Pension entitlement than you may otherwise have qualified for because it receives concessional treatment from Centrelink, helping you maximise your potential retirement income. However, there’s no option to withdraw lump sums with this pension option.

The key feature of this product is its regular, secure income for life. It is best considered as a building block within a balanced retirement solution to provide you with strong protection from the risk of running out of money in retirement. 

A Defined Benefit Indexed Pension (DBIP) is a lifetime pension option available to retiring members of the Defined Benefit Division (DBD). It’s only available to members who joined the DBD before 1 July 1998 and have maintained continuous membership since then. DBIPs aren’t available to any other members.

The income amount you receive from a DBIP is based on a formula. Payments are indexed each year in line with increases to Consumer Price Index (CPI) and are not affected by the fluctuation of investment markets.

Similar to the CRIP, a DBIP will protect you from all risks including longevity risk, investment risk, and inflation risk, so you have a stable retirement income for life.  However, there’s no flexible access to withdraw lump sums with this pension option.

The key feature of this product is its regular, secure income for life, and the annuity factor means the DBIP allows you to maximise your expected income for the rest of your life – helping manage any cost-of-living pressures.