Transition to retirement

If you have super outside CSS, you may be able to get these savings as a regular tax-effective income stream in the lead up to retirement. 

This is known in super speak as a transition to retirement strategy.

Please note transition strategies are not available in CSS under scheme rules. You can, however, take up a transition strategy in the Australian Government super environment as a CSS contributor using the account-based income stream product explained below.

How transition works

  • you roll some money into an account-based income stream
  • you get regular income stream payments from your account-based income stream
  • you continue to contribute to CSS.

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 view your preservation age.

CSS 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.

Start today

See the CSCri website to open a CSCri account.

More information

Transition strategies

People use a transition to retirement strategy to:

  • boost a final super benefit
  • reduce work hours but not income
  • increase total take home 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 view your preservation age.

Key features

Item 

Feature

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)

 

Restart option

You can restart your CSCri with additional money

You should seek advice or make yourself aware of any impacts on Centrelink or other government payments

 

Other contributions

Not allowed (but you can top-up your account balance via the Restart option or contribute voluntarily into PSSap)

 

Income payments Monthly, quarterly, half yearly or annually
 
 
Annual income amount

Choose between minimum and maximum amounts

 

Withdrawals

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

 

Taxation

Age 60 and over
Tax-free income payments (withdrawals generally not allowed)
Tax-free investment returns

Age 60 and under
Tax-free investment returns
Concessional tax on income payments (withdrawals generally not allowed)

Full information in CSCri Product Disclosure Statement

 

Asset test

100% assessed under the Assets TestVisit 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:

 

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

 

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.