If 55 – 59 and retiring

If you retire between age 55 and 59, you may want to use your super to start an income stream investment, rather than take it as a cash lump sum.

This is because:

• No lump sum tax is payable when you rollover the benefit,
• No tax will be payable on earnings in the fund,
• The taxable income payments will attract a 15% pension offset so you'll be able to receive up to $45,789 pa without paying any tax*,
• When you reach age 60, you can receive unlimited tax-free income stream payments without having to include these in your annual tax return.

While the impact of these tax benefits will depend on your individual circumstances, using your super to start an income stream could make a big difference to your retirement lifestyle.

To find out more about income stream investments, talk to a financial adviser.