An account-based pension is a retirement income stream that can be purchased with money from your superannuation when you retire. It offers regular, flexible, and tax-effective income, and you can choose how much you want to transfer to the pension phase', the size and frequency of your payments, and how you want your super invested through your fund. The pension lasts as long as your super money does, but it is not a guaranteed income for life. Here are some key features of an account-based pension:
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Eligibility: You can get an account-based pension when you reach 'preservation age' (between 55 and 60) .
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Payments: You can set up regular payments over the course of your retirement, rather than taking your super as a lump sum.
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Investment: You can choose how you want your super invested through your fund.
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Beneficiaries: If you nominated a spouse or dependent as a beneficiary, they can take your death benefit payment as a pension or lump sum. A non-dependent beneficiary can take your benefit payment as a lump sum.
Consider the pros and cons of an account-based pension to decide if it is right for you.
