What is an account based pension?
An account based pension allows you to draw an income from your retirement savings.
What is an account based pension?
An account based pension is a retirement income stream which you can commence using the proceeds from your super balance, once you’ve met a condition of release.
What are the benefits?
- Continue to receive an income once you’ve retired by regularly drawing amounts from the super you’ve accumulated while working.
- Income payments are tax-free at age 60 or over.
- No tax is payable on investment earnings as the pension is in retirement phase.
How do they work?
Account based pensions begin by transferring a lump-sum – usually from your super account – into an account based pension product.
You can select the frequency of payments you receive (minimum of once per year) and how much you wish to withdraw each year.
There are minimum amounts you must withdraw each year, for more information please view pension drawdown requirements.
Your balance will be invested in the investment option(s) you choose and you can withdraw a lump sum at any time.
Got a question?
Get set in the right direction with help and guidance available over the phone, online or face-to-face.
General advice and information only
Any advice and information on this website is general only, and has been prepared without taking into account your particular circumstances and needs. Before acting on any advice on this website you should assess or seek advice on whether it is appropriate for your needs, financial situation and investment objectives.
Tax disclaimer
Any general tax information on this website is intended as a guide only and is based on our general understanding of taxation laws. It is not intended to be a substitute for specialised taxation advice or an assessment of your liabilities, obligations or claim entitlements that arise, or could arise, under taxation law, and we recommend you consult with a registered tax agent.
Connect with us
Download the MLC app
