Transition to retirement

Get super while working

You can access your super savings as a regular tax-effective income stream in the lead up to retirement. This is known  as a transition to retirement strategy.

How transition works:

  • you roll some of your PSSap super savings into a separate superannuation product, known as an account-based income stream
  • you get regular income stream payments from your account-based income stream
  • you continue to save into your current PSSap account.

You don't have to retire or leave your job to take-up a transition to retirement strategy, but you must have reached your preservation age. This age is set by law at between age 55 and 60 depending on your date of birth. It is age 60 if you were born on or after 1 July 1964.

See withdrawing super to find out your preservation age.

PSSap members can take-up an account-based income stream in the Australian Government super environment. This product is 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

Transition strategies

People use a transition to retirement strategy to:

  1. boost final super benefit 
  2. reduce work hours but not income
  3. increase total income.

Eligibility

People may consider a transition strategy if they:

  • have reached preservation age (age 60 if born on or after 1 July 1964)
  • have a minimum of $20,000 in super
  • wish to get tax-effective income from super while working
  • wish to get tax free income payments from age 60
  • want investment choice and tax free investment returns.

See withdrawing super to learn your preservation age.

Key features

Product name

Commonwealth Superannuation Corporation retirement income (CSCri)                                                     

Type of income stream

Transition, account-based

Minimum investment

$20,000 in your CSCri account (the minimum balance in PSSap is $1,000 for contributing and ancillary members and $5,000 for non-contributors)

Other contributions

Not allowed (but you can contribute voluntarily into PSSap)

Income payments

Fortnightly, monthly, quarterly, half yearly or annually

Annual income amount

Choose between minimum and maximum amounts

Withdrawals

Generally not allowed (only in limited circumstances)

Taxation

Age 60 and over

Tax-free income payments (withdrawals generally not allowed)

Tax-free investment returns

Under age 60

Tax-free investment returns

Concessional tax on income payments (withdrawals generally not allowed)

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

  3. Balanced (Ancillary Members only)

  4. Aggressive

Competitive fees

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

Exit fee: $36 per withdrawal

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

Investment management fees: Estimated at 0.14%--0.85% per annum

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

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 a 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.