Having enough income when you stop working is a fundamental part of enjoying retirement. Whether your retirement is six months or six years away, the time to start thinking and preparing is now.

What is a super income stream?

Super income streams can provide a regular, flexible and tax effective source of income during your final years of work and into retirement.

How does it work?

You need at least $10,000 to set up your income stream. You can transfer money from:

·        an existing super or income stream account

·        an approved deposit fund

·        a retirement savings account.

When you start a super income stream, you decide:

·        how much you want to receive as a regular payment (within Government limits), and

·        how often you want to receive those payments.

Your regular payments will be deposited directly into your nominated bank account. You can change your regular income payments if your needs change. One of the benefits of an income stream is that you keep your money invested to help it continue to grow through your retirement. You’ll continue to be paid until the money in your account runs out (or you die).

What are the tax benefits?

Generally no tax is payable when you transfer your money into a super income stream and no tax is payable on any investment earnings if you have a Fully Retired account. And if you transfer your super or TTR account to a Fully Retired income stream, you could be eligible to receive a tax refund. If you’re under 60 years of age, your super income stream payments are taxed on a concessional basis. Some of your super income stream may be tax-free and you’ll receive a 15 per cent tax offset on any taxable proportion. If you’re 60 or over, the super income stream payments you receive are tax-free.

Making the transition to retirement

A transition to retirement income stream gives you extra flexibility in the later years of your working life, allowing you to transfer or rollover some or all of your super into a super income stream account and receive regular payments without having to retire.

There are a number of ways you can use a TTR income stream:

·        work part-time and use it to supplement your income

·        work full-time and use it to provide some or all of your income. You could then salary sacrifice more of your wages into your super account, providing potential tax savings (contribution caps apply)

·        combine it with full-time work and use the additional income to reduce non-deductible debt or improve your lifestyle.

Am I eligible for a Cbus Super Income Stream?

To be eligible to start a Cbus Super Income Stream, you must:

·        have a minimum of $10,000 to invest, and

·        have reached your ‘preservation age’ as shown in the table below:

If you were born:

Before 1 July 1960; your preservation age is 55

·        1 July 1960 to 30 June 1961; your preservation age is 56

·        1 July 1961 to 30 June 1962; your preservation age is 57

·        1 July 1962 to 30 June 1963; your preservation age is 58

·        1 July 1963 to 30 June 1964; your preservation age is 59

·        1 July 1964 or after; your preservation age is 60

How do I start a Cbus Super Income Stream?

If you’re already a Cbus member, your existing account can simply be ‘rolled over’ to the Cbus Super Income Stream. Keep in mind that the Government currently limits the amount of super you can transfer into income streams like the Fully Retired account up to $1.7 million – this is called your transfer balance cap. To find out more read the Cbus Super Income Stream Product Disclosure Statement available from cbussuper.com.au/sispds

When you’re ready, simply complete the application form at the back of it. Financial advice Speak to a qualified adviser over the phone You don’t need to work things out alone. If you need advice about super or income streams, you can speak to one of our qualified financial advisers over the phone – this service is included as part of your membership. Meet with a Certified Financial Planner For more detailed personal financial advice, we can refer you to an accredited CERTIFIED FINANCIAL PLANNER (CFP®) who meets strict professional qualification and service criteria set by Cbus and the Financial Planning Association (FPA) of Australia. The financial planner can offer you advice on a fee-for-service basis. Your first meeting is at no cost and any fees for advice will be agreed with you in advance. Call Cbus on 1300 361 784 (press 4 for advice) to book your first meeting.

About the Cbus Super Income Stream You can choose the income stream to suit your needs:

·        Transition to Retirement (TTR) income stream Available while you’re still working if you’ve reached your preservation age and are under age 65.*

·        Fully Retired income stream Available if you’ve reached your preservation age and permanently retired from the workforce, reached age 65 or met another condition of release.*

·        Other conditions and eligibility requirements apply.

If you’re on Centrelink payments, or are planning to apply for them, make sure you get advice before opening an income stream account.

This information is provided by and about Cbus. It doesn’t take into account your specific needs, so you should look at your own financial position, objectives and requirements before making any financial decisions. Read the relevant Cbus Product Disclosure Statement to decide whether Cbus is right for you. Call us on 1300 361 784 or visit cbussuper.com.au for a copy. Also read the relevant Target Market Determination at cbussuper.com.au/tmd (available from 5 October 2021). Cbus’ Trustee: United Super Pty Ltd ABN 46 006 261 623 AFSL 233792 Cbus ABN 75 493 363 262 1206.9 07-21 ISS6

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