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Transition to retirement

You can access your super savings as a regular tax-effective income stream in the lead up to retirement.

Transition to retirement 

Transition to retirement strategies are popular with people who have reached their preservation age and are continuing to work. These strategies involve receiving some of your super savings now as a regular tax effective income stream, while salary sacrificing into super.

Please note that transition strategies are not allowed in the CSS under scheme rules. CSS members can however select a transition to retirement income stream through the Commonwealth Superannuation Corporation retirement income stream (CSCri). It is one of two income streams available to you, the other being a standard retirement income stream.

Note

To maximise your transition to retirement, you can also join PSSap as an Ancillary Member. See Ancillary Membership for more information.

 

Transition strategies

People use a transition to retirement strategy to:

  1. Boost final super benefit
  2. Reduce work hours but not income
  3. Increase total income.

 

Eligibility

People may consider a transition strategy if they:

  • Have reached preservation age (age 60 if born on or after 1 July 1964)
  • Have a minimum of $20,000 in super
  • Wish to get tax-effective income from super while working
  • Wish to get tax free income payments from age 60.

 

See withdrawing super to learn your preservation age.

Key features

Product name

Commonwealth Superannuation

Corporation retirement income (CSCri)

Type of income stream Transition to retirement income stream
Minimum investment $20,000
Other contributions Not allowed (but you can contribute voluntarily into PSSap)
Income payments Fortnightly, monthly, quarterly, half yearly or annually
Annual income amount

Choose between minimum and maximum amounts

Ad hoc withdrawals

are not available for transition to retirement income streams

Withdrawals Generally not allowed (only in limited circumstances)
Taxation

Age 60 and over

Tax-free income payments

Under age 60

Concessional tax on income payments

Full information in the CSCri Product Disclosure Statement

Asset test 100% assessed under the Assets TestVisit the Centrelink website for more about the Assets Test
Income test

Assessed against the Income Test (Centrelink will apply deductible amount)

Visit the Centrelink website for more about the Income Test

Investment options

Choose one or a mix of:

1. Cash

2. Income Focused (default)

3. Balanced

4. Aggressive

Competitive fees

Administration fee: $30 per month ($360 per year)

Exit fee: $36 per withdrawal (not applicable to regular income payments)

Investment switches: Nil for the first two (2) switches in any financial year. Additional switches are $20 each

Indirect cost ratio: estimated at 0.16% - 1.47% per annum depending on the investment option chosen.

Other fees and costs also apply, including buy-sell spreads and other activity fees. For full details refer to the CSCri Product Disclosure Statement

Personal financial advice

Access to fee for service, no commission personal financial advice for your individual situation and goals, provided by CSC's authorised* financial planners.

*Our authorised financial planners are authorised to provide advice by Guideway Financial Services (ABN 46 156 498 538, AFSL 420367.). Guideway is a licensed financial services business providing CSC financial planners with support to provide members with specialist advice, education and strategies.

Online account management CSCri Member Online
Beneficiary nomination Reversionary, binding or non-binding
Keeping you informed
  • Member Statement including confirmation of next year's payments
  • Schedule for Centrelink or Department of Veterans' Affairs
  • PAYG Payment Summary

More information

Like most investments, CSCri is not without risk, including the risk of negative investment returns. For more information about the features, benefits, fees and the risks of investing in CSCri, please refer to the CSCri Product Disclosure Statement.

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