How does a Pre-Retirement Pension work?
If you are still working and have reached your super preservation age (currently 55), you have the option to access your superannuation in the form of a Pre-Retirement Pension.
While you're still working, your own, and your employer's super contributions will continue to be paid into your MyLife MyPension account.
For example, a person may finish working full time but continue part time work, and use some of their super pension to supplement their reduced income.
What are the features of a Pre-Retirement Pension?
- You must have reached your preservation age (but be under 65 years) and still working.
- No entry fees
- No contribution fees
- No withdrawal fees
- No switching fees
- Competitive ongoing management fee
- Selection of investment options
- Investment earnings are tax free
- Pension payments are tax free from age 60
- Under the age of 60, some of the pension may be tax free and the remainder may be eligible for a 15% tax offset
- Regular tax effective income to supplement employment income
- Flexible pension payments, twice monthly, monthly, quarterly, half yearly or annually
- Regular member statements; half yearly and an annual statement
- Online Access to your account via our secure portal MyLife Online
Please note that you do not have access to your account as a lump sum and pension payments each year are restricted to 10% of your account balance.
TURN TAX INTO SUPER
less tax - more super - same income
Implemeting a Transition to Retirement (TTR) strategy with a Pre-Retirement Pension can let you lower your tax and boost your super savings while keeping the same income! All by incorporating salary sacrificing.
Learn more on accessing your super in pre-retirement and having a transition to retirement strategy.
How to apply for a Pre-Retirement Pension
Full details and all the forms you'll need to apply are contained in the Product Disclosure Statement (PDS), which you should consider before making any decision.
Consider consulting a financial planner before you invest. MyLife MyPension has a team of professional financial planners who can assist you. Our financial planners are salary based and do not receive any commissions or bonuses based on recommendations they make.
Please call us on 1300 963 720 to make an appointment or learn more on MyLife MyAdvice.