Retirement income

New retirement income options

CSCri now provides greater flexibility to members who want to receive regular and tax effective income payments through the introduction of:

  • a rollover option that allows prospective CSCri members to use superannuation savings from outside the Government super environment (such as a rollover from another superannuation fund) to commence a CSCri income stream.
  • a restart option that allows current CSCri members to restart their CSCri account with additional money (eg, from the sale of an investment property, an inheritance or other windfall, or from other superannuation savings);

These changes allow greater opportunity for members to stay within the Australian Super environment in retirement.

For details visit the CSCri website

Get your super as income

There are many ways you can get your super savings in retirement: an account-based income stream, annuity or lump sum, to name a few.

You may even get a mix of income from both within and outside of super.

Account-based income stream

An account-based income stream is a popular option if you want to receive regular tax-effective income payments from your super savings.

Benefits can include:

  • regular income payments from your super savings
  • tax-free income payments and eligible withdrawals from age 60
  • investment choice and tax-free returns
  • control of your money with ad hoc withdrawals.

Account-based income streams are sometimes called pensions. But they're different, for example, to CPI-indexed pensions paid to retiring CSS and PSS members.

Account-based means your superannuation income is paid until your account balance is zero. As your balance is invested in one or more investment options, there's the potential for capital growth over an investment horizon that could last 20 years or longer.

Income stream for PSSap members

PSSap members can take up an account-based income stream in the Australian Government super environment. It's called Commonwealth Superannuation Corporation retirement income (CSCri). CSCri is offered through PSSap. It is only for employees of the Australian Government or other participating employers to assist them in meeting their retirement income needs.

More information

Retirement income

To help work out your potential retirement income, use the following calculators:

If you opt for an account based income stream, you must elect to receive at least your minimum annual payment amount for your age each year set by legislation.

This minimum amount is set by your CSCri account balance at your start date in your first financial year and at 1 July for each financial year afterwards.

In CSCri, you can choose to get monthly, quarterly, half yearly or annual income payments.

Access to money

Your money is not locked away if you choose to roll some or all of your super into CSCri. Arrangements are flexible, so you change them to suit your changing needs:

  • Need to quickly access an ad hoc amount? You can make withdrawals at any time (unless you have a transition to retirement account because you're under age 65 and still work).
  • Prefer to have investment choice of your account balance? You can choose from one or a mix of four investment options in CSCri and change at any time.
  • Want to increase or decrease how much income you get or the frequency of your income payments? You can change your preferred payment amount (within annual limits), your payment method if your balance is invested in more than one option and if your payments are monthly, quarterly, half yearly or annually.
  • Prefer to manage your account online? Use PSSap Member Online.

 

Tax effective

Keeping your savings invested in super at retirement and drawing a regular income stream can be a very tax effective strategy, helping the longevity of your savings.

If you are age 60 and over:

  • your investment returns in CSCri are tax free
  • your income payments and ad hoc withdrawals are paid tax free (ad hoc withdrawals are generally not allowed in transition to retirement).

If you are under age 60:

  • your investment returns in CSCri are tax free
  • PAYG tax is withheld from the taxable component of your income payments
  • tax on ad hoc withdrawals is based on your tax components.

This can leave more money in your account to earn investment returns. Over time, these returns can earn their own returns, known as 'compounding interest'.

Note however, tax in super can be complex and is subject to change. That's why we recommend you consider professional advice for your own situation and needs.

See tax and super for information about the tax treatment of superannuation.

Eligibility

To open a CSCri account, you must be a PSSap, CSS or PSS member with a minimum starting balance of $20,000 who will either be:

  • permanently retired from the workforce, having reached preservation age
  • in new employment on or after age 60
  • age 65 or older.

See withdrawing super to view your preservation age.

Key features

Product name

Commonwealth Superannuation Corporation retirement income (CSCri)                                                    

Type of income stream

Standard retirement income stream, account-based

Minimum investment

$20,000

Other contributions

Not allowed

Income payments

Fortnightly, monthly, quarterly, half yearly or annually

Flexible income and lump sum options

Income payments

Choose to be paid monthly, quarterly, half yearly or annually, by direct debit to your bank, building society or credit union

There is a minimum annual payment amount (no maximum)

Ad hoc withdrawals

Available at any time (but not in transition to retirement)

Taxation

Age 60 and over

Tax-free income payments and ad hoc withdrawals

Tax-free investment returns

Under age 60

Tax-free investment returns

Concessional tax on income payments and ad hoc withdrawals

Full information in the CSCri Product Disclosure Statement

Asset test

100% assessed under the Assets Test

Visit the Centrelink website for more about the Assets Test

Income test

Assessed against the Income Test (Centrelink will apply deductible amount)

Visit the Centrelink website for more about the Income Test

Investment options

Choose one or a mix of:

  1. Cash
  2. Income Focused (default)
  3. Balanced
  4. Aggressive
Competitive fees

Administration fee: $30 per month ($360 per year)

Exit fee: $36 per withdrawal (not applicable to regular income payments)

Investment switches: Nil for the first two (2) switches in any financial year. Additional switches are $20 each

Indirect cost ratio: estimated at 0.14% - 0.85% per annum depending on the investment option chosen.

Other fees and costs also apply, including buy-sell spreads and other activity fees. For full details refer to the CSCri Product Disclosure Statement

Personal financial advice

Access to fee for service, no commission personal financial advice for your individual situation and goals, provided by Industry Fund Services

Online account management

CSCri Member Online

Beneficiary nomination

Reversionary, binding or non-binding

Keeping you informed
  • Member Statement including confirmation of next year's payments
  • Schedule for Centrelink or Department of Veterans' Affairs
  • PAYG Payment Summary

Product Disclosure Statement

Read the CSCri Product Disclosure Statement for full details including:

  • about CSCri
  • key features and benefits
  • how the CSCri works and your options
  • investment options and risk
  • fees and other costs
  • how retirement income streams are taxed
  • nominating a beneficiary
  • how to open and keep track of your account.

Financial advice

We encourage you to first speak with a financial planner to ensure this transition strategy is appropriate for your needs, circumstances and retirement planning goals.

See financial advice to learn about the personal financial advice service offered to PSSap members by Industry Fund Services.

Start today

See open income stream to join the CSCri income stream product.