Get regular payments and cash lump sums to supplement your lifestyle. You can take advantage of greater tax breaks, such as tax-free investment returns.

Once you reach age 60, all income you withdraw, including cash lump sum payments, is 100% tax free. So, it helps keep you going while your funds keep growing. 

To be eligible for a RIS you don’t have to formally retire. You can start accessing a RIS once you:

  • Reach 65 – whether or not you retire;
  • Once you reach your preservation age (currently 57) and formally retire; or
  • After leaving a job after reaching age 60. 

Retirement income stream improvements

Pay one of the lowest fee

Adjust your retirement income as you go

Setting up a RIS from your super account gives you the freedom to receive regular payments, just like when you’re working. You also have the flexibility to dial them up or down, to take a cash lump sum if needed – say for a holiday or home renovation – and to choose when you want to receive your payments (fortnightly, monthly, quarterly, half-yearly or yearly).

How a Retirement Income Stream works

Click here for the full assumptions used in the example.

This scenario is based on a member with a $200,000 and a $500,000 super account balance. The example shows the difference between having money invested in an accumulation account and an income stream account. It includes the following assumptions:

  • Assumed investment earnings are based on a Balanced risk profile net of fees and earnings tax:
    • Accumulation 5.50%
    • Retirement Income Stream 6.00%
  •  The scenario does not take into account any additional contributions.
  • The scenario assumes the minimum drawdown from the retirement income stream of 2.5% for 2019/20 and 5% in the following financial years for someone aged 65-74.

Please note that all projections are based on current economic and investment conditions, current legislation (including tax, super and Centrelink amongst others), inflation and interest rates, estimates of an assumed future income and capital growth rates. So the ability of the projections to predict actual long-term outcomes is limited as these factors may change in the future. Accordingly, our figures are estimates only and do not constitute a guarantee of future investment performance. Regularly reviewing your plans will assist in amending your strategy to manage these changes.

This case study is for demonstrative purposes and includes general information and financial projections based on assumptions about the future. Results may differ depending on the accuracy of these assumptions, your situation and other factors.

It does not take into account your specific objectives, financial situation or needs. You should consider the information having regard to your personal circumstances. It is recommended that you consult a financial adviser if you require financial advice that takes into account your personal circumstances.

An initial discussion with a First State Super financial planner, at no cost to you, will help you determine the level of advice you may need to achieve what you want. Advice is provided on a fee-for-service basis and will vary depending on the complexity of your financial affairs. Fees for comprehensive advice relating to your super account with First State Super can be deducted from your account.

Start a RIS in a few simple steps

Setting up a RIS account is simple. You simply link it to your super account and decide how much of your super balance you want to transfer across. 

Already a member?

Download and complete the Retirement Income Stream account form and read our Retirement Income Stream Member Booklet to learn more on how it all works, from choosing an investment mix to nominating a beneficiary. 

Please consider your own financial position, objectives and requirements and seek financial advice before making any financial decisions.

If you’ve got super in multiple funds, you should consider combining them before opening an income stream.  You can only make one transfer into your income stream, so ensure you have the amount you want transferred in the one super account.

Combine your super now

When you apply to set up an income stream, think about how long you need your money to last, and how often you want to receive payments. This is something you will need to tell us when you fill out an application form to transfer to an income stream.

A binding nomination or reversionary nomination protects the financial future of
the people you leave behind. When deciding who gets your money when applying to open an income stream, you can choose from:

  • Your spouse;
  • Your child/children;
  • A financial dependent;
  • An interdependent; or
  • Your Estate 

Not a member of First State Super?

You can only start a retirement income stream account from a First State Super
superannuation account. To do this, you’ll have to join the fund as a personal
member so that you have an account to deposit or roll money into to set up your
retirement income stream. This will also entitle you to all the benefits available to our members, such as free simple advice related to your account.

Join First State Super

You should read the Member Booklet for personal members before making a decision.

If you’ve got super in multiple funds, you should consider combining them before opening an income stream. You can only make one transfer into your income stream, so ensure you have the amount you want transferred in the one super account. You will need to have your super account set-up before you can do this.

Combine your super

Download and complete the Retirement Income Stream account form and read our Retirement Income Stream Member Booklet to learn more on how it all works, from choosing an investment mix to nominating a beneficiary. 

Please consider your own financial position, objectives and requirements and seek financial advice before making any financial decisions.

When you apply to set up an income stream, think about how long you need your money to last, and how often you want to receive payments. This is something you will need to tell us when you fill out an application form to transfer to an income stream.

A binding nomination or reversionary nomination protects the financial future of
the people you leave behind. When deciding who gets your money when applying to open an income stream, you can choose from:

  • Your spouse;
  • Your child/children;
  • A financial dependent;
  • An interdependent; or
  • Your Estate

Things to keep in mind:

  • You can start a RIS with as little as $20,000.
  • You must withdraw a minimum amount each year. It’s a sliding scale from 2% while you’re under 65, up to 7% when you’re 95 and older^1.
  • From 60 years, all withdrawals, including cash lump sum payments are 100% tax free. Prior to age 60, income payments and lump sum withdrawals can be subject to tax.
  • Choose one or more of our 12 investment options for your income stream.
  • The maximum you can transfer to your RIS account for tax-free investment returns is $1.6 million.
  • Your RIS account will cease when your balance is exhausted. How long it lasts depends on how much you transfer into your account, how much you take in payments each year and the investments returns you receive.

  1. As a result of the COVID-19 crisis, the Government has reduced the minimum annual payment required for account-based pensions by 50% in the 2019–20 and the 2020–21 financial years.

$1.6 million transfer balance cap

A $1.6 million cap applies on the total amount of super that can be transferred into a tax-free retirement income stream account. If you go over this cap, you will be subject to a tax on the estimated amount of the earnings on the excess.

Note: If you have more than one retirement income stream, the cap applies to the combined amount in all your retirement income stream accounts (investment returns are excluded).

How can we assist you?  

Moving into retirement is a big change, so don’t go it alone. Maximising any Centrelink entitlements, asset allocation, income streams, estate planning, tax breaks, lump sums: there’s a lot to consider. That’s why we’re here to provide you support and advice that’s tailored to you.

Simple retirement advice, at no extra cost

First State Super members get access to simple financial advice about your super, retirement income stream options and insurance.

Simple advice covers:

  • How to set-up a RIS
  • Withdrawals
  • Investments
  • Insurance
  • Contributions

What if you need advice on more complex issues?

Financial advice can make a big difference when you’re planning for retirement. If you need a retirement plan that delves into areas such as the age pension, investments outside super and much more, then one of our fully qualified financial planners can help.

Comprehensive advice can include:

  • Lifestyle after work
  • Family
  • Age pension and other Govt assistance
  • Property & investments
  • Tax
  • Investments
  • Debt & cash flow

Book your appointment

Preservation age

Your preservation age is when you can first access your super. It changes, depending on your date of birth.

Date of birth Preservation age (years) Earliest access
Before 1 July 1960 55 Eligible now
1 July 1960 – 30 June 1961 56 Eligible now
1 July 1961 – 30 June 1962 57 Maybe eligible
1 July 1962 – 30 June 1963 58 1 July 2020
1 July 1963 – 30 June 1964 59 1 July 2022
After 30 June 1964 60 1 July 2024

Minimum withdrawal limits^1 based on age:

Your age Temporary minimum 2019/20 and 2020/21 Normal minimum Maximum
Under 65 2% 4% 10% (TTR only)
65-74 2.5% 5% No maximum
75-79 3% 6% No maximum
80-84 3.5% 7% No maximum
85-89 4.5% 9% No maximum
90-94 5.5% 11% No maximum
95+ 7% 14% No maximum