RI Allocated Pension

Your investment options

We invest your super across a range of different asset classes to give you the best chance to grow your retirement savings. You can have your super automatically invested in the Balanced plan - or you can choose your investment plan. This means you can:

• Choose the asset classes your super is invested in, from Shares to Cash
• Choose how much of your super is allocated between the asset classes
• Change your investment plan to suit your retirement savings goals

Your super might be one of the biggest investments you’ll ever make. The investment plan you choose now can make a difference to the amount of income you receive from your pension and how long it will last.

Different assets create different returns

Your RI Allocated Pension offers a range of investment plans. These plans invest in different assets, with the returns linked to how the financial markets perform.

You can choose to invest in a range of different asset class allocations through our Readymade plans or create your own combination of asset classes with Mix Your plan.

You can choose a Readymade plan

There are five Readymade plans with different levels of risk and return expectations.

For more details, please see Investment options - RI Allocated Pension.

You can choose the Cash plan and another Readymade plan

This means some of your money will be invested in the Cash plan and the rest of your money in another Readymade plan. You can have your pension paid from the two plans in a certain order - for example, the Cash plan first. Or you can choose a percentage of your pension payment to be taken from each investment plan. If there are not enough funds in your chosen plan, then the rest of your payment will be taken from your other plan.

The amount of money in each investment plan will reduce as your pension payments are made. From time to time you might like to review the amounts in your investment plans and transfer money between them.

You can Mix Your plan

There are five Mix Your plan options which allow you to select your own mix of asset classes.

You can choose the order or the percentage of your pension to be paid from each of your asset classes. To maintain your chosen percentage, you’ll need to check there is enough money invested in your asset classes. If there are not enough funds in one of more of your asset classes, the rest of your payment will be drawn from across your other asset classes.

You may also need to make changes to your Mix Your plan to make sure the percentage held in each asset class remains the same over time. Find out more about How Mix Your plan works.

For more details, please see Investment options - RI Allocated Pension.

Need more help with your investment plan?

• Use our Selecting your investment plan tool to help you work out which plan best suits your needs
• Find out more about choosing the right investment mix for you
• Find out more about How Mix Your plan works
• Call your Member Services Centre on 13 43 72

To change your investment plan, download the Investment choice form, Retirement Income Pension.

1 Mix Your plan Fixed Interest invests in Investment Grade Bonds. These are bonds with a credit quality which is considered to have a relatively low level of default risk by an independent bond-rating agency.

Fees and other costs

Please note: we no longer charge service fees for transactions, such as Family Law splitting and full or partial withdrawals, effective 15 December 2018.

For more information on these changes, read our article: We've removed service fees.

We may make changes to the fees we charge

From time to time, we might need to change our fees to make sure the structure and level of fees is appropriate, including any extra costs from government taxes or statutory charges.

We’ll always let you know about any changes through our website or your member statement. If the change is an increase in fees or charges, we’ll give you at least 30 days’ notice.

Fees are charged in different ways

Below is a general guide to the fees and costs for an RI Allocated Pension account.

Other fees, such as fees for personal advice, might be charged, depending on the type of advice you choose. Entry fees and exit fees will not be charged.

For more information on the types of fees and costs that may apply to your account, see page 10 of the Retirement Income Pension Product Information Booklet.

1 If your account balance is less than $6,000 at the end of the financial year, certain fees and costs charged to you in relation to administration and investment are capped at 3% of the account balance. Any amount charged in excess of that cap must be refunded.
2 Investment fees and costs includes an amount of 0.00% p.a. to 0.06% p.a for performance fees. The calculation basis for this amount is set out under the ‘Additional explanation of fees and costs’ section on page 11 of the Retirement Income Product Information Booklet. Please note, the transaction costs percentage is also included in the investment fees and costs percentage shown in the table.
3 Please see the ‘Additional explanation of fees and costs’ section on page 11 of the Retirement Income Pension Product Information Booklet, which provides further detail about the items included in transaction costs.

Your income options

An RI Allocated Pension converts your super into a regular income, which you can adapt to suit your needs. This means you can:

• Choose how much income you’re paid, within limits set by the Commonwealth Government
• Get paid monthly, quarterly or yearly into a bank account in your name
• Make lump-sum withdrawals of $1,000 or more, provided that at least $1,000 remains in your account (unless your account is to be closed)
• Change how much you’re paid and how often by completing a Payment variation form

How to choose an income that suits your needs

To decide on the best way to receive your pension payments, it can help to think about:

• Your lifestyle and expenses
• Whether you qualify for income payments from the government, such as the Age Pension
• Any other income you receive from other sources
• How much your partner earns (if you have a partner earning an income)
• How long you might need your pension to last
• Your minimum annual pension (see the section below)

See Government Age Pension and Cost of living in retirement to help you work out your income needs.

You might also want to ask us about our Retirement Options Service or seek personal financial advice for your situation.

You need to withdraw a minimum amount every financial year

The Commonwealth Government has set a minimum annual pension limit. This is the percentage of your pension account balance that we need to pay you each financial year.

Your minimum annual pension rate depends on your age:

Each year, we multiply your pension account balance on 1 July by your minimum annual pension rate. We’ll let you know what your new minimum annual pension is, and if we need to change your payments to ensure you receive at least this amount.

During your first year, we use your account balance on the date you joined and we work out your minimum pension on a pro-rata basis. If you open an account in June, you can also choose to receive your first payment after 1 July.

If you’re planning to make a lump-sum withdrawal to close your account, and you haven’t received your required minimum pension, then we’ll need to pay your outstanding pension before we can pay your lump sum.

Use our example to work out your minimum annual pension

Chris is 60 years old and has $200,000 to invest in an RI Allocated Pension on 1 July 2023. We’ve worked out his minimum annual pension below. If you print this page, you can add your own details in the space provided.

Ready to set up your regular pension payments?

Find out How to open an RI Allocated Pension account.

RI Allocated Pension and tax

When you open an RI Allocated Pension account, you might need to pay tax on the money you transfer from your super. How you’re taxed depends on whether you have a taxed fund, like GESB Super, or an untaxed fund, like West State Super or Gold State Super.

In general, you pay less tax when you transfer your super to an allocated pension, than you do if you take your super as a lump-sum payment. Find out more about paying tax when taking your super money out.

Your investment earnings are tax free and you could pay less tax

An RI Allocated Pension offers tax benefits, which means you might pay less tax than you would if you chose another type of investment. There are two ways you can benefit:

• Investment earnings in your pension account are tax-exempt
• If you’re 60 or over, your regular income payments and lump-sum payments from your pension are tax free

Here’s a summary of the tax rules that apply to your RI Allocated Pension account.

Different parts of your pension are taxed differently

Your RI Allocated Pension account may include two different parts or ‘components’. Each part is taxed differently, depending on where the funds come from. You might have:

1. A tax-free component
This is the tax-free part of your super benefit that was transferred to your pension account. You do not pay tax on this amount. For example, it would include personal contributions made to your super that you didn’t claim as a tax deduction. If you transferred from West State Super or Gold State Super, it would also include any part of your benefit that was taxed at 47% because your balance was above the untaxed plan cap.
2. A taxable component
This is the taxable part of your super benefit that was transferred to your pension account. You may pay tax on this part of your pension when you access it. For example, it would include employer and salary sacrifice contributions.

To find out more about the tax components of your pension account, please call your Member Services Centre on 13 43 72.

How tax applies to your regular income and lump-sum payments

The two tables below provide a summary of how tax applies to your regular income payments and any lump-sum payments from your RI Allocated Pension.

Tax treatment for the 'Taxable component - taxed element' of your pension account

Tax treatment for the 'Tax-free component' of your pension account

You will pay no tax on income from your RI Allocated Pension if you’re aged 60 or over

If you are 60 or over, your regular income stream payments and any lump-sum payments from your RI Allocated Pension will be completely tax-free and you won’t need to include these payments in your personal income tax return.

Examples of how regular income payments are taxed

If your pension account has a tax-free and a taxable component, your regular income payments will include a proportional amount drawn from each component, based on the total value of your pension.

Here are two examples of how income payments are taxed according to your age and the components of your account.

To learn more about how your RI Allocated Pension is taxed, you can:

• Read the tax section on page 34 of the Product Information Booklet
• Call your Member Services Centre on 13 43 72

1 Tax offset is available for a disability super benefit.
2 For the 2023/24 financial year, indexed annually in line with Average Weekly Ordinary Time Earnings in increments of $5,000 rounded down.

Important documents

To make the most of your retirement savings, it’s worth learning as much as you can about your RI Allocated Pension account, including the tax considerations and investment plans available.

Schedule of fees

Your investments