Ready to retire?
Read time: 1 min

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. 

Key benefits

  • 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.

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 LUCRF 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.

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?

Have you:

  • 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.

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