Transition to Retirement

Bill is age 60 and has $150,000 saved in super. He currently earns $75,000 per year (gross), so his take home pay is $2,374 per fortnight.

Bill wants to cut back his hours to four days a week, but he doesn’t want to reduce his fortnightly income. Speaking to our Advice team, he learns he can:

• cut back his hours to four days a week and receive $1,970 per fortnight
• open an income stream account and request a fortnightly payment of $403

Bill can now enjoy his extra day off, without sacrificing his spending habits^*.

^* It is important to note that using funds from his super now may reduce the amount that is available to fund Bill’s income when he fully retires.

These examples are provided for illustration purposes only and are not intended to replace financial advice. This information doesn’t represent the benefits that you could receive or the fees and costs you may pay - the outcome will depend on your personal circumstances.

Assumptions: The figures shown are in today's dollars, assuming a 2.5% per year rise in the cost of living (inflation). Calculations are based on 2024/25 tax rates and the Medicare levy of up to 2% of taxable income is not included. Rebates or tax offsets that may lower the tax you pay are also not included. Past performance is not a reliable indicator of future performance.

Mary is also age 60. She earns $75,000 a year and has $150,000 saved in super. Mary plans to retire at age 67. With only a few years to go, she wants to do everything she can to boost her savings.

Speaking to our Advice team she learns she can:

• Contribute an extra $1,781 each month ($21,375 per year) using salary sacrifice, which reduces her taxable income
• Open an income stream account and request a monthly payment of $1,247 ($14,962 per year), which will be paid tax free because she’s over age 60.

This means Mary can add $6,413 to her super over the year without affecting her take home pay.

These examples are provided for illustration purposes only and are not intended to replace financial advice. This information doesn’t represent the benefits that you could receive or the fees and costs you may pay - the outcome will depend on your personal circumstances.

Assumptions: The figures shown are in today's dollars, assuming a 2.5% per year rise in the cost of living (inflation). Calculations are based on 2024/25 tax rates and the Medicare levy of up to 2% of taxable income is not included. Rebates or tax offsets that may lower the tax you pay are also not included. Mary's salary and income stream payments are assumed to increase in line with inflation of 2.5% per year. Salary sacrifice is done to maximise the concessional contributions cap in line with indexation of the cap.

Past performance is not a reliable indicator of future performance.

Before opening a TTR account, here are some important considerations and requirements:

A TTR income stream is treated differently to other forms of income by the Centrelink assets test and may affect any Centrelink entitlements. If you’re on Centrelink payments, or are planning to apply for them, make sure you get further advice before opening a TTR account.

• Lump sum withdrawals aren’t generally allowed (unless you meet another condition of release that lets you access your benefits from the TTR account).
• Your account balance counts towards your total super balance (exceptions apply).
• You can stop your payments and transfer your balance to your super account but you cannot add more funds to your income stream once it starts.
• Once you turn 65 (or tell us you meet another condition of release that gives you unrestricted access to your TTR account balance) your account will convert to a Fully Retired income stream. As part of this:
  • Tax on investment earnings don’t usually apply
  • The amount you take into the Fully Retired income stream will count towards your transfer balance cap.

To find out more, read the Cbus Super Income Stream Product Disclosure Statement.

To be eligible to open a TTR account, you need to be between 60 and be under 65.

• Lump sum withdrawals aren’t generally allowed (unless you meet another condition of release that lets you access your benefits from the TTR account).
• Your account balance counts towards your total super balance (exceptions apply).
• You can stop your payments and transfer your balance to your super account but you cannot add more funds to your income stream once it starts.
• Once you turn 65 (or tell us you meet another condition of release that gives you unrestricted access to your TTR account balance) your account will convert to a Fully Retired income stream. As part of this:
  • Tax on investment earnings don’t usually apply
  • The amount you take into the Fully Retired income stream will count towards your transfer balance cap.

You can choose to have your income payments paid:

You can’t choose an annual payment date of 15 July because your 1 July account balance isn’t available at that date. If you don’t nominate a frequency, you’ll be paid fortnightly. You’ll continue to receive payments until the money in your account runs out.

In a TTR income stream, your investment earnings are taxed at up to 15%.

There are four ways to add extra contributions to super and each have their own benefits. Some of these are dependent on your age, income and super balance:

• Salary sacrifice
• After-tax contributions
• Spouse contributions
• Downsizer contribution

Learn more about how to add to your super (PDF)

If you're considering selling your home, you may be able to make a downsizer contribution.

Learn more about how to make a downsizer contribution (PDF)