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.
To maximise your transition to retirement, you can also join PSSap as an Ancillary Member. See Ancillary Membership for more information.
People use a transition to retirement strategy to:
- Boost final super benefit
- Reduce work hours but not income
- Increase total income.
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.
Corporation retirement income (CSCri)
|Type of income stream||Transition to retirement income stream|
|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)|
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|
Assessed against the Income Test (Centrelink will apply deductible amount)
Visit the Centrelink website for more about the Income Test
Choose one or a mix of:
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||
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.