What are the differences between a Transition to Retirement Pension and an RI Allocated Pension?
Our Retirement Income Pension can be taken as either:
- An RI Allocated Pension - a standard allocated pension product
- A Transition to Retirement Pension - a transition to retirement income stream that allows you to access your super as an income stream while you’re still working
Here’s a summary of the differences between the two pensions.
Transition to Retirement Pension | RI Allocated Pension | |
---|---|---|
Lump sum withdrawals | You cannot make lump sum withdrawals | You can make lump sum withdrawals |
Transfer balance cap | No transfer balance cap applies | A $1.9 million cap applies on the total amount of accumulated super that you can transfer to or hold in tax-free retirement accounts |
Maximum pension amount | Maximum amount of 10% of your account balance can be drawn in a financial year (set by the Commonwealth Government) | No maximum amount applies |
Tax on investment earnings | Tax is generally applied up to a rate of 15% and will be reflected in the unit price for each Transition to Retirement Pension investment plan | No tax applies to investment earnings |
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