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Transition to Retirement Account

A Transition to Retirement Account could allow you to work less and relax more.

A Transition to Retirement Account is designed to allow you to transition or ‘ease-in’ to retirement. This means that you can reduce your working hours and supplement your income with payments from your Transition to Retirement Account. Alternatively, you may continue to work full-time.

You can start a Transition to Retirement Account if you are aged between your preservation age and 65 and you have a minimum account balance of $10,000. It is important to note that there are minimum annual payments that must be taken depending on your age, and a maximum annual payment of 10% of your account balance.

Benefits of a Transition to Retirement Account include:

  • Allowing you to reduce your working hours without retiring – Enabling you to relax more, pursue a hobby, or take that trip you have been dreaming of.
  • Supplementing your part-time income – This means you could receive a full-time income by working part-time.
  • A tax-effective income – If you are over 60, your payments are tax-free.
  • A choice of 8 investment options – Club Super has a range of investment options to suit your needs.
  • Flexibility for payment frequency – You can choose to be paid fortnightly, monthly, quarterly, six-monthly or yearly.
  • Insurance cover – For your peace of mind, you may be eligible to apply for insurance1 cover for Death at the time of setting up your Club Income Stream account.

The fees and costs associated with a Transition to Retirement Account are:

 Fixed administration fee

 $156.00 per annum ($3.00 per week)

 Indirect administration fee

 Up to 0.30% per annum of assets2

 Indirect investment fee

0.59%3

 Indirect cost ratio (ICR)

 0.04% - 0.57% per annum of assets, depending on the investment option4

 Investment switching fee

 No fee is charged.

 Exit fee

$55

To find out more about the Transition to Retirement Account, please refer to the Club Income Stream PDS  or call our Club Super Client Contact centre on 1300 369 330.

Need help deciding if a Transition to Retirement Account is right for you? Contact us to discuss the financial advice options available to you.5

Please note: Temporary residents are not eligible to commence a Transition to Retirement Account.

1 Refer to the Club Income Stream PDS for more information , or call Club Super on 1300 369 330 to have one sent to you.

This is deducted from investment returns prior to the determination of crediting rates.

This is deducted from investment returns prior to the determination of crediting rates. The amount shown in for the Balanced investment option, and will vary according to the investment option.

4 The indirect costs included in the ICR are based on actual costs for the year ended 30 June 2017. This is deducted from investment returns prior to the determination of crediting rates.

5 Club Super Financial Planning advice is provided by My Super Future Pty Ltd (ABN 38 122 977 888) Australian Financial Services Licensee (AFSL no. 411440). The Trustee is not responsible for, and does not accept liability for the products or services or actions of My Super Future Pty Ltd. You should use your own judgment before taking up any product or service offered by My Super Future Pty Ltd. Fees may be charged for the provision of personal advice. All fees will be explained to you in detail prior to any advice being given and there are no ongoing commissions as our planners work on a fee-for-service basis.