Unless indicated otherwise, the information in the table is based on data provided by SuperRatings Pty Limited ABN 95 100 192 283, a Corporate Authorised Representative (CAR No.1309956) of Lonsec Research Pty Ltd ABN 11 151 658 561, Australian Financial Services Licence No. 421445.
*Past performance data and fee data is for the period ending June 2024
A pension fund, or account-based pension, lets you turn your superannuation into a regular income stream once you've reached retirement age. You allocate a portion of your super into a pension fund and then choose to receive a regular payment from the fund.
The income stream can be annual, monthly, fortnightly — whatever works for you.
An account-based pension fund is a tax-effective way to set up a regular income for your retirement, while keeping the bulk of your super invested.
Helps you create — and stick to — a fixed income in retirement. Many retirees prefer this to pulling out a lump sum, spending it over time and then dipping back into their remaining super.
You can set up payments to come in just as your salary was paid while you were working.
If you withdraw all your super as a lump sum then it's no longer invested with your fund. This is fine if you've got other plans for the money.
But if you have an account-based pension fund the money is still invested. You're benefiting from investment returns for longer.
If you're 60 or older, you don't pay tax on account-based pension payments. And you don't pay tax on any investment earnings once you reach retirement age either.
When comparing pension funds look at:
💡 Before doing any of the above, it's worth talking to a financial advisor and an accountant to make sure you're setting everything up in a way that's tax effective and aligns with your goals.
You can access (or "drawdown") as much of your super as you like once you've hit preservation age. But there are minimum amounts you can withdraw from the age of 64. Your minimum drawdown amounts increase as you get older.
The ATO notes that the following information is indicative only. Figures are for the 2023-24 financial year.
| Age | Minimum % of super balance you must drawdown |
|---|---|
| 64 | 4% |
| 65–74 | 5% |
| 75–79 | 6% |
| 80–84 | 7% |
| 85–89 | 8% |
| 90–94 | 11% |
| 95 and over | 14% |
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