Allocated Pension

 

Enjoy your life after work with a regular and reliable income

The last thing you want to worry about in retirement is money. When you’re used to having a regular and reliable pay coming in each week, the idea of having to make sure the money you’ve got lasts as long as you do, can be really daunting.

The good news is that with a Maritime Super Allocated Pension, you can continue living life with the certainty and security that comes with having a regular income.

You don’t have to take your super as a lump sum

Instead of taking your super as a lump sum, you can move it to an Allocated Pension account. By doing this, you’ll have a regular and reliable income to support you, or supplement your Age Pension. Plus, your money will continue to be invested in the investment option of your choice where investment earnings are tax free, which means it could last a lot longer.

 

With an Allocated Pension you get:

  • the certainty that comes with a regular income.
  • tax free investment earnings.
  • a broad range of investment options to invest your money in.
  • the ability to manage your account online.
  • to make lump-sum withdrawals when you want or need to.
 

How long will my savings last?

The last thing you want in retirement is to run out of money. How long your pension lasts depends on a number of different things, including your lifestyle and:

  • how much money you have in the account to start with.
  • the amount you have paid to you each year.
  • the investment returns you earn.

On average, Maritime Super members retire with more super that most Australians. So it may not be an issue for you - but it’s best you check your own situation.

See for yourself

The best thing you can do is use the Pension Drawdown Calculator to see how long your pension might last. It even shows you how investing in a different investment option will make a difference. What’s more, if you find the money won’t last as long as you hoped, you can see exactly how much longer it would last if you reduce your payment amount, or the length of time you want it to last.

 

See how an Allocated Pension could work for you

The best way to see how a pension could work for you is to talk to one of our financial planners. They’ll help you look at the benefits it could deliver, but also make sure it won’t work against you. Call us on 1800 757 607, or make an appointment now.

 

Frequently asked questions

How old do you have to be to set-up an Allocated Pension account?

To set up a Pension account, you need to have retired and reached your Preservation age, turned 65 or reached 60 and terminated employment.

Your Preservation Age is based upon when you born.

 

Date of birth Your Preservation Age
Before 1 July 1960 55 years
1 July 1960 to 30 June 1961 56 years
1 July 1961 to 30 June 1962 57 years
1 July 1962 to 30 June 1963 58 years
1 July 1963 to 30 June 1964 59 years
After 30 June 1964 60 years

 

How much money do I need to start an Allocated Pension?

To start a pension account you need to have at least $30,000. You cannot have start a pension with more the $1.6 million.

Will I pay tax on my investment earnings and payments?

If you are 60 or older, all of your pension payments and investment earnings are tax free.

If you are under 60, the taxable portion of your payments will be taxed at your marginal tax rate, plus the Medicare levy. However, you may be able to get a tax rebate of up to 15%. Your investment earnings are tax free..

What investment options do I have?

Your pension account has the same investment options as your super account. You can invest your money in one option, or across a range of different options. And you can choose which investment option your payments are taken from.

How often are the payments?

You get to decide how often you want to be paid – monthly, quarterly, half yearly or yearly.

Can I withdraw a lump-sum from my account?

You can withdraw some, or all of the money in your account at any time, as long as you have already been paid the minimum pension payment amount that year.

How much can I withdraw?

Your minimum payment amount is based on your age, and starts at 4% of your total balance if you’re under 65. You can elect to receive more than the minimum.

What happens to my money if I die?

Unlike your other assets, your Pension does not automatically form part of your estate. We need you to tell us who you want to get the money in your pension account if you die by nominating your beneficiaries. If you don’t nominate your beneficiaries, it’s left up to the Trustee to decide how the money in your account gets distributed to your dependants. Learn more about nominating beneficiaries.

Are there any risks?

Like you super, and any investment for that matter, there are some risks:

  • The amount in your account may reduce if there are negative investment returns.
  • Because you have to take a minimum amount out of your account each year, there is the possibility that if there are negative returns these losses will be locked it.
  • Your eligibility for a Centrelink Age Pension could be affected.
  • Depending on how much you start with, and how much you take out, your pension may not last for the remainder of your life.
  • There is the potential that future government changes to super and tax laws could affect your pension.
 

Opening a pension account is simple and straight-forward

Find out exactly what is involved and how to get started.

You can give us a call on 1800 757 607 and we can talk you through the process, or make an appointment with a financial planner to help you get your pension set up. 

 

Learn more