Account based pensions

Convert your super savings into a regular source of income

Create regular payments when you retire

If you’re starting to plan for life after work and wondering how you can access your super in retirement, an account based pension is one option that can provide you with a tax-effective, regular source of income.

What is an account based pension?

A popular choice for retirees, an account based pension allows you to pay yourself a regular income using the money you have saved in super, once you have reached your preservation age and retire from the workforce. Your preservation age will be between 55 and 60 depending on when you were born.

Your money stays invested in your choice of options and continues to deliver returns throughout your retirement – after all you still need your savings to work hard for you.

What are the benefits of an account based pension?

  • Receive a regular income and choose your payment frequency
  • Earn more savings, because the money in your account remains invested
  • Switch up your investment options as required
  • Your investment earnings are tax exempt
  • Money you have drawn down is generally tax free after age 60
  • Unlimited access to your capital

How does an account based pension work?

  1. A lump sum amount is transferred from your super into your account based pension
  2. You choose the frequency of your payments and the amount you would like to withdraw each year.
  3. There are minimum amounts you must withdraw each year, depending on your age.
  4. You choose the investment option for your balance.
  5. You can withdraw a lump sum at any time.

What are the minimum drawdown requirements?

The amount you decide to take as pension payments over a financial year are subject to a minimum percentage of your account balance. This percentage is based on your age at the start of your pension and then at 1 July for every financial year onwards.

Age at start of pension or 1 July Minimum factor 50% Reduction to Minimum factor (for 2019/20 & 2020/21)
Under 65 4% 2%
65-74 5% 2.5%
75-79 6% 3%
80-84 7% 3.5%
85-89 9% 4.5%
90-94 11% 5.5%
95 and above 14% 7%

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How do I start?

For VISSF members, when you reach preservation age, a pension tab will appear within your Member Online dashboard. Simply log in and click on the tab. From there, follow the prompts to open your account based pension.

How do I manage my account?

Once your pension account is set up, you can manage everything through Member Online or the VISSF mobile app. From reviewing beneficiaries, making withdrawals, adjusting your payment frequency and amount, or switching your investment options, you will have total control 24/7.

Is an account based pension right for me?

We suggest you seek financial advice before implementing your retirement strategy. You can discuss your options with a member of the VISSF Advice team.

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Ready, set, retire!

Your super savings will play an important role in funding your life after work. Learn how to make them thrive as you create a flexible income stream in retirement.

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Quickly calculate how long your super pension will last.

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