Increase income

Boost income before retirement

This transition to retirement strategy aims to give you more money to spend by supplementing your current employment income with income payments from your super savings.

It involves opening a superannuation product, known as an account-based income stream.

You roll a portion of your super into your income stream account. You get paid regular income payments from your account balance, while you continue to receive 15.4% employer contributions into your PSSap account.

Benefits can include:

  • more money for your pre-retirement lifestyle
  • super (tax free from age 60) as a regular income stream while still working
  • tax-free investment returns within your income stream account.

This strategy, however, will reduce your total super savings. That's because you spend a portion of your super savings before permanent retirement.

The PSSap Retirement Modeller may help project how much money you will need to reach your retirement goals.

It's possible to take up this strategy in the Australian Government super environment using the income stream product available to PSSap members called Commonwealth Superannuation Corporation retirement income (CSCri). CSCri is offered through PSSap.

More information

How the strategy works

How to take up this strategy in the Australian Government super environment:

Eligibility

You must be a PSSap contributor who:

  • has reached preservation age (age 60 if born on or after 1 July 1964)
  • can transfer a minimum of $20,000 from PSSap into an income stream product called Commonwealth Superannuation Corporation retirement income (CSCri).

See withdrawing super to find out your preservation age.

Strategy set-up

Open a CSCri account with a minimum starting balance of $20,000.

Get regular income stream payments from CSCri (monthly, quarterly, half yearly or annually) between minimum and maximum annual payment amounts.

Take home income

By getting income payments from super in addition to your full-time employment income, you'll have more take-home income to spend. This may be useful if before you retire you want to do improvements around your home, travel or pay off some debts.

Final super benefit

To help work out much you could end-up with, use the following calculators:

Remember, you will be drawing down your super before retirement, meaning you will have less super savings at retirement. We encourage you to first consider how long until you wish to retire and how much income you will need to live on for a retirement of 20 years or more.

Permanent retirement

What happens when you stop work and permanently retire?

You can consolidate your super savings into PSSap before you permanently retire. Then you can open a single retirement income stream to enjoy:

  • regular payments to meet your income needs
  • no set maximum annual income amounts
  • tax-free payments from age 60
  • ad-hoc withdrawals when needed
  • investment choice
  • tax-free returns
  • online account management.

See  open income stream to join the income stream product for PSSap members called Commonwealth Superannuation Corporation retirement income (CSCri). This product can be used as either a transition or retirement income stream.

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.