Your super may be one of the largest sums of money you will ever have. You can access this money in the form of regular payments (an income stream) once you have retired or reached Your super may be one of the largest sums of money you will ever have. You can access this money in the form of regular payments (an income stream) once you have retired or reached preservation age.
A retirement income provides you with an income stream from your own super savings and it can often work in conjunction with Government (Centrelink) pensions, depending on your eligibility.
Why consider a retirement income?
While it may be tempting to withdraw a large sum once you retire, the more money you withdraw, the less you'll have to rely on later.
As well as allowing you to set up regular payments as if you were being paid a wage or salary, a retirement income lets you keep your money in super, which has great tax benefits and can mean your money lasts longer.
Benefits of a retirement income
- Receive a regular income paid into your bank account.
- Help you cover your basic needs and wants for the rest of your life
- Your investment earnings (within a retirement income) are tax-free.
- Payments from your retirement income are tax free once you reach age 60.
- Supplement any Centrelink entitlements you may be eligible for.
Types of retirement income
VicSuper offers four types of retirement income - more than one option may be suitable for you, depending on your circumstances:
- VicSuper Flexible Income - for people who have retired.
- VicSuper Flexible Income with a Transition to Retirement feature - for people who have reached their preservation age but are still working and want to boost their super savings or transition to retirement.
- Guaranteed Income for Life* - for people who are 60 or more and would like a guaranteed income for the rest of their lives.
- Guaranteed Fixed Term Income* - for people who are 60 or more and would like a guaranteed income for a set period of time.
*The money you invest in a Guaranteed Income account is invested in a life policy (Policy) issued to VicSuper by Challenger Life Company Limited (ABN 44 072 486 938, AFSL 234670) (Challenger Life), a life insurance company within the Challenger group of companies. The benefits provided by the Guaranteed Income accounts are supported by the Policy, and not VicSuper Pty Ltd (VicSuper) as Trustee of the VicSuper Fund. VicSuper will only pay members their payments under the Guaranteed Income accounts to the extent that the Trustee receives payment from Challenger Life. Challenger Life's ultimate parent is Challenger Limited (ABN 85 106 842 371, AFSL 234670). Neither Challenger Limited nor any other company within the Challenger group of companies guarantees the performance of Challenger Life's obligations or assumes any liability in connection with the Policy. All references to guarantee refer to amounts payable under the Guaranteed Income accounts being guaranteed from the available assets of Challenger Life's Statutory Fund No.2. For more information about the guarantee, limitations and risks associated with the guarantee, please read the Guaranteed Income Product Disclosure Statement.
Get some expert advice
The best retirement strategy varies from person to person depending on their individual circumstances and short and long-term plans.
VicSuper offers a great value advice service that comes highly recommended by our members. In fact, 99.9% of members surveyed who have received advice said they would recommend us to others*. Even better, it's offered without obligation, and in most cases there is no additional charge to members. You'll generally receive a personal plan that includes your retirement income options and how you could get the best possible Centrelink entitlement.
If you're approaching retirement or you'd like to start transitioning, our qualified financial planners can recommend strategies to help you achieve your retirement goals and future income needs.
Don't sit there wondering - our team members are here to help!