Ready to retire?
You’ve worked hard for years. Now it’s time to make your super work hard for you by turning it into an income stream.
What’s a retirement pension?
A retirement pension allows you to receive regular income payments from your super while the balance stays invested and continues to grow. It’s an alternative option to withdrawing super as a lump sum.
Investment earnings are tax-free.
Once you turn 60, pension payments are tax-free.
If you're under 60, pension payments are taxed at your marginal tax rate with a 15% tax offset available.
You can adjust your regular payment amounts and make one-off withdrawals at any time.
Your account balance continues to be invested.
If you’re eligible for the Government’s Age Pension you can use your retirement income stream to top up your income.
Opportunity to have an extra bonus amount added to your new account. 1
Get an extra Pension Bonus from us!
If you have an existing LUCRF Super TTR Pension or super account with us, and you’re thinking about opening a new Retirement Pension, you may be eligible to have a bonus amount added to your new account.
It’s a bonus for staying invested with us – and it represents a tax saving that we’d normally have to pay, but are able to pass back to you when you move into our Pension product.
How much is the Pension Bonus?
You could receive up to $4,800 depending on your account balance.
It’s calculated at 0.3% of your average balance in each eligible investment option over the last 12 months.
The table below shows the calculated Pension Bonus based on a member’s average super or TTR account balance over 12 months.
|Average 12-month super / TTR account balance||Pension Bonus amount|
Note: the maximum pension bonus payable will increase to $5,100 from 1 July 2021 as the transfer balance cap increases to $1.7 million due to indexation.
Please note that the pension bonus will be paid in full regardless of whether it results in the transfer balance cap being exceeded. Exceeding the transfer balance cap can have tax consequences. You should consider seeking appropriate tax advice before making any decisions.
There’s no need to apply. If you’re eligible to receive it, the Pension Bonus will automatically be added to the opening balance of your new Retirement Pension account.
How it works
You’ll need a minimum balance of $10,000 to deposit into your retirement pension account.
You'll need to leave a minimum of $1,500 in your super account if you want to keep it open.
Choose your investment options. We offer a range of different options you can choose from or leave your investment in our default Balanced option.
Choose whether you want to carry over your insurance from your super account.
Nominate your beneficiary/ies.
Tell us how often and where you’d like your payments to be made.
And to get the Pension Bonus you'll need to:
- Have been a LUCRF Super member (with funds in a super or TTR Pension account) for at least one year.
- Have your funds invested in an eligible investment option during that time.
Things to consider
- Annual minimum withdrawal limits apply to retirement pension accounts, depending on your age. See our Pension Member Guide for current limits. There are no maximum withdrawal limits.
- Any insurance in your LUCRF Super account can be continued in your LUCRF Retirement Pension (until you turn 70).
- Your retirement pension may be taken into account for the Assets and Income Test for the Age Pension.
- A maximum $1.6 million lifetime limit applies for transfers from super into the retirement phase.
Are you eligible?
reached preservation age (starts at 57 depending on when you were born) and retired?
reached the age of 65 or over?
If so, the LUCRF Retirement Pension could be right for you. If you have any questions about your eligibility or your choices, speak to one of our experienced advisers at no extra cost.
Do you need some help understanding your options?
Speak to one of our experienced financial advisers at no extra cost to you.Request a callback
The transfer balance cap imposes a strict limit on how much super can be transferred from your super account into your retirement account. The cap means no more than $1.6 million can be transferred into the retirement phase and benefit from tax-free investment earning. Please see the ATO website for details.
Advice about your super is included as part of our membership.
1 Eligibility criteria, rules and conditions will apply. Please see our PDS for details. If you close or withdraw more than 50% of your retirement pension account within 12 months of opening it, the bonus will be reversed from your account.