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Investor Education > Pension > Why invest in an account based pension?


Account based pensions are a way to make your superannuation benefits stretch further in retirement. They are flexible and tax effective for receiving a regular income in your retirement and offer a number of advantages.

Have access to your money when you need it.  Investors can make lump sum withdrawals (except if transitioning to retirement) and most account based pension products allow you to change the frequency and amount of your pension payment to suit your needs (subject to a minimum pension payment amount). You can:

  • Choose the frequency of payments that best suit your changing circumstances
  • Vary the amount of your payments (subject to a minimum annual limit)
  • Withdraw a lump sum at any time
  • Payments will continue as long as there is a balance in your super account, once the amount is zero the payments will cease

There is no maximum limit set on the income that can be drawn each year, giving you greater flexibility in determining your income requirements.

Tax benefits
If you are over the age of 60 or more you will not pay tax on investment earnings within the pension environment, and will not pay tax on pension payments. You may be able to roll over any unrealised capital gains in your superannuation to the allocated pension where no tax is payable if you later sell it from the pension account. These tax advantages enable you to get more mileage out of savings invested in your pension through the power of compound interest.

Investment choice
You can continue to access a broad range of investment options to choose the right investment mix for your situation.


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