What you can do with your super when you retire
When you retire or transition to retire, you can choose what you do with your super. You can:
- Keep it in your super account
- Start a regular income from it
- Withdraw it
- Use a combination of these options.
Keep your money in super
You don’t have to start withdrawing your super as soon as you retire. You can keep your money in super for as long as you like.
A few points to consider:
- You’ll continue to pay tax on your investment earnings. If you’re not working or adding to your super, you’ll need to tell us if you want to keep your current insurance.
- If you’re still working as part of a transition-to-retirement strategy or you’re working up to 10 hours a week, your employer will keep making super contributions for you.
- Once you turn 65, you’ll need to meet a few conditions (known as the work test) before making voluntary contributions into your super.
Start a regular income
Use your super to open a pension account and pay yourself a regular income.
You can choose a flexible income pension (like our Flexi Pension) or a lifetime pension (like our indexed pensions).
Flexible income pensions
Flexible income pensions let you choose:
- how much you’re paid (subject to government-set minimum and maximum amounts)
- how often you’re paid
- how long your super will last.
Transition to retirement
You can use an adjustable pension account to supplement your income while you transition to retirement. A transition-to-retirement (TTR) pension lets you draw money from your super while you’re still working. This lets you keep the same take-home pay and reduce your work hours.
Fixed income pensions
Fixed income pensions give you:
- a fixed regular income for life (indexed in line with CPI each year)
- a guaranteed minimum amount over 10 years in most cases
- protection for you (and possibly your partner) from outliving your retirement savings.
Withdraw your super as a lump sum
If you’re retired or aged over 65, you can take some or all your super out of your account.
This can help to pay off debts or take care of necessary expenses but could impact your future income, especially if your super is your main source of income.
Combination
You can combine some or all these options to set up your retirement income. A financial adviser can help you set up a strategy that’s right for you.
Find out how tax applies to your pension and super withdrawals.