Could an account-based pension work for you?

If you’ve stopped working or are thinking about retiring, you may want to consider moving some or all of your super from an accumulation account into an account-based pension.

You might consider an account-based pension if you:

• Want to receive regular tax-free income from your super.
• Want your super investments to continue growing in a tax-free environment.
• Are comfortable with investment risk and meeting minimum annual withdrawals.
• Want a relatively simple way to pass remaining super to beneficiaries.

The Australian Food Pension is our account-based pension solution. Open an account or learn more.

What about the Age Pension?

Remember, if you are looking at taking the next step towards retirement, the Age Pension may play an important role in supporting your retirement income. The Age Pension is designed to support eligible Australians in retirement and to qualify, you generally must be:

• 67 years or older
• meet income and assets test requirements
• an Australian resident, usually for at least 10 years

You can learn more about eligibility and apply through Services Australia.

Keep growing your super

If you don’t need to draw an income yet, you may choose to keep your super in an accumulation account so it can continue to grow over time.

You might stay in an accumulation account if you:

• Don’t need income yet and want to keep your super invested for growth.
• Plan to keep contributing to your super.
• Prefer greater flexibility before deciding on a retirement income strategy.
• Are concerned about how market movements could affect pension payments.
• Keeping your account open for insurance cover.

  If you have insurance through your super, it’s a good time to review whether it still suits your needs. Depending on your situation, you may choose to keep, adjust or cancel your cover. Reducing or cancelling insurance can mean more of your balance stays invested for your future.  Read about all your options here.

Could you add more to your super?

If you’re keeping your account open so it can continue to grow, do you have any opportunities to contribute more money to it? Even small contributions can make a difference over time. Find out more about boosting your retirement savings.

Transition to retirement

If you’re aged 60 or over and still working, a transition to retirement strategy lets you gradually move from full-time work to retirement.

How it works

• Access a portion of your super through an account-based pension
• Reduce your working hours while supplementing your income
• Potentially lower your tax liability
• Maintain financial stability as you adjust to retirement

TTR pensions have a maximum annual withdrawal limit, and investment earnings are taxed like your Australian Food Super account.

The Australian Food Pension is our account-based pension solution. Open an account or learn more here. 

Government co-contributions

You may be eligible for a Government co-contribution when you make personal contributions from your after-tax income:

• If eligible, the Government could add extra money to your super
• This can be a simple way to boost your balance

See the difference it could make

Want to understand the impact of contributing more?

• Try our Small Change, Big Savings tool, our super calculator that estimates how extra contributions could grow your balance over time

How to make a contribution

Making a personal contribution is simple:

• Ask your employer to contribute from your before-tax pay. Please note that some employers do not allow salary sacrifice payments so you will need to check with your payroll.
• Make a contribution directly to your account by BPAY or Electronic Funds Transfer
• Complete a Contribution Form

Or, call us on 1800 808 614 and we can help you get started.

Do you have more than one super fund?

If you’ve changed jobs over the years, you may have multiple super accounts—and be paying multiple fees.

You may want to consider consolidating your super into your Australian Food Super account*.

We can help you:

• Find any lost super
• Roll your super into one account

*Before consolidating, check whether you could lose any benefits, such as insurance cover, from your other fund.

Low income super tax offset (LISTO)

If you’re a low-income earner, you may benefit from the Government’s Low Income Super Tax Offset (LISTO).

• This scheme helps eligible individuals boost their super
• The Government may refund some of the tax paid on concessional contributions

Is your investment option right for you?

Choosing an investment option that suits your circumstances is an important part of managing your super. As you head toward retirement, keep in mind that it can now last 25-35 years. It’s a good idea to consider whether having some of your savings in higher-risk investments will help support long term income. For example, if you move all your investment to cash, this could increase the risk of running out of money later.

When reviewing your investments, consider:

• Your risk tolerance
  If you’re uncomfortable with short-term market fluctuations, a lower-risk option may suit you better.
• Your time horizon
  Think about how long you have until retirement — and how long your money will need to last in retirement.
• Expected returns
  Over the long term, higher-risk investments may deliver higher returns, but they also come with more volatility.
• Market ups and downs
  Investment markets naturally rise and fall. 

Our investment options

Australian Food Super offers seven investment options to Pension members:

• Secure
• Capital Stable
• Conservative Balanced
• Balanced
• Growth
• Australian Shares
• International Shares

You can choose to invest in one or spread your investment across two or more options. Please refer to the Investment Guide for more details of these investment options.