Transition to Retirement Pension

Our Retirement Income Pension can be taken as either an RI Allocated Pension, a standard allocated pension product, or as a Transition to Retirement Pension, for those who want to access their super as an income stream whilst still working. The main differences between these two pensions are in how your retirement income gets paid to you, your working situation and how tax applies.

Here we provide an overview of our Transition to Retirement Pension option.

Once you’ve reached your Commonwealth preservation age, you can use your super to start a regular pension such as our Transition to Retirement Pension. Your Transition to Retirement Pension will be set up in one of our Transition to Retirement Pension investment plans, and you’ll be subject to the minimum and maximum pension limits. Try our quiz to see if transition to retirement could be right for you.

Try the quiz

You can't make lump-sum cash withdrawals with this type of pension, so it is also known as a non-commutable income stream. However, once you retire, you’ll be able to review your options and consider setting up a regular RI Allocated Pension.

  • Overview

    We’ve looked after your super and we can help you transition to retirement too.

    With our Transition to Retirement Pension, you can:

    • Convert part or all of your super into a regular non-commutable income stream
    • Choose to receive between the minimum 4% and a maximum of 10% of your super account balance each financial year, calculated at the start of the financial year
    • Invest your account balance in a choice of investment options
    • Use Member Online to manage your account online
    • You can also change your super account structures if your personal circumstances change
    • Receive payments directly into your bank account monthly, quarterly or annually
    • Change the amount of pension you receive each year, subject to minimum and maximum limits set by the Commonwealth government
    • Continue to work and have your contributions paid into your GESB Super or West State Super account

    If you’re 60 or over, your pension payments will be tax free.

    Make the most of our tools, services and expertise

    If you'd like to learn more and make informed decisions about how to manage your super and retirement savings, we can help. As a GESB member, you have access to:

    At GESB, we have over 85 years’ experience managing the super savings of current and former WA public sector employees.

    With around 247,000 members and over $39 billion in funds under management (as at 31 March 2024), we're the largest super fund in WA*.

    * Research Solutions, Member and employer satisfaction research, 2022 and SuperRatings 2023 Annual Benchmarking Report.

  • What is a Transition to Retirement Pension?

    Our Transition to Retirement Pension is an account which allows you access to your super as an income stream while you are still working. This could suit you should you choose to reduce your work hours, as the income you receive from your super benefits can help to make up for any loss of salary you may have.

    The image shows the difference a transition to retirement strategy could have on the tax you pay, your super contribution, and your take home pay. Without a transition to retirement strategy, the tax you pay could be more; your super contributions would consist of employer contributions only; and your take home pay would be made up of employer pay only. With a transition to retirement strategy, the tax you pay could be less; your super contributions would consist of employer contributions and salary sacrifice contributions; and your take home pay would be made up of both employer pay and your transition to retirement pension.

    If you still want to work the same hours, you may consider using a Transition to Retirement Pension as a way to increase your income, or to maximise your retirement savings through salary sacrifice. There may be some tax benefits for you, however we recommend that you seek personal financial advice before making a decision.

    To be eligible to open a Transition to Retirement Pension, you must have reached your Commonwealth preservation age (shown below).

    A Transition to Retirement Pension does not allow lump-sum cash withdrawals, so it is also known as a non-commutable income stream. However, once you retire, you’ll be able to review your options and consider setting up a regular RI Allocated Pension.

    Is transition to retirement right for you?

    Transition to retirement is a way you can access your super while you’re still working.

    Take our simple quiz to see whether it could be right for you.

    Transition to Retirement form

    The benefits of a Transition to Retirement Pension

    With a transition to retirement strategy in place, you could:

    • Increase your super - you'll continue to work and can sacrifice some of your salary to super
    • Reduce your hours - you can work less without reducing your overall income, as your pension can make up for your lower salary
    • Increase your income - you'll be receiving an income stream from a pension as well as your normal salary

    You can find the right balance to suit your needs, with the flexibility to change your strategy as your circumstances change. We recommend that you speak with a financial adviser, accountant or tax adviser to help you decide if our Transition to Retirement Pension is right for you.

    There are a number of ways you can use transition to retirement to benefit you:

    What is your Commonwealth preservation age?

    To be eligible to open a Transition to Retirement Pension from your GESB Super or West State Super account, you need to have reached what’s known as your preservation age:

    • If you were born on or before 30 June 1964, you can access your super when you turn 59
    • If you were born on or after 1 July 1964, you can access your super when you turn 60

    If you’re a Gold State Super member, you can start a Transition to Retirement Pension from the age of 55 but you’ll pay more tax if you access your super before you reach the Commonwealth preservation age.

    Transfer balance cap

    It is important to note that the transfer balance cap of $1.9 million does not apply to transition to retirement income pensions. Find out more about the transfer balance cap.

  • 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 TTR - 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 Transition to Retirement 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 four Readymade plans with different levels of risk and return expectations.

    Transition to Retirement Pension Readymade plans
    Investment plan Investment risk label

    Growth plan TTR

    High

    Balanced plan TTR

    Medium to high

    Conservative plan TTR

    Medium

    Cash plan TTR

    Very low


    For more details, please see Investment options - Transition to Retirement Pension.

    You can choose the Cash plan TTR and another Readymade plan

    This means some of your money will be invested in the Cash plan TTR 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 TTR 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.

    Transition to Retirement Pension Mix Your plan
    Investment plan Investment risk label

    Australian Shares TTR

    Very high

    International Shares TTR

    High

    Property TTR

    High

    Fixed Interest TTR1

    Medium

    Cash TTR

    Very low

    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 - Transition to Retirement Pension.

    Need more help with your investment plan?

    To change your investment plan, download the Investment choice - RI Allocated Pension and Transition to Retirement Pension form.

    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 our 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 a Transition to Retirement 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.

    Transition to Retirement Pension fees

    Type of fee or cost

    Amount

    How and when paid

    Ongoing annual fees and costs1  

    Administration fees and costs

    The fee for managing your account

    Nil

    Not applicable

    Costs incurred that relate to the administration and operation of the Transition to Retirement Pension and that are not otherwise charged as a fee mentioned in this table are deducted from the fund assets before the daily unit price is calculated. The administration fee is noted as nil because it is not a separate fee and is included in the ‘Investment fees and costs’ shown below

    Investment fees and costs2

    Estimated to be between 0.18% p.a. and 0.52% p.a. of the value of your investment, depending on which investment  plan you choose

    Fees and costs that relate to the investment of assets that are not charged directly to your account as an administration fee or other fee. These costs are deducted from the fund assets, before the unit price is calculated on a daily basis

    Transaction costs

    Estimated to be between 0% p.a. and 0.08% p.a. of the value of your  investment, depending on which investment plan you choose

    		 Transaction costs are costs incurred when assets are bought and sold. Transaction costs are incurred over the course of the year and disclosed as a percentage of the average assets of the relevant investment option3
    Member activity-related fees and costs  

    Buy-sell spread

    Nil

    Not applicable

    Switching fee

    The fee for changing your investment plan

    Nil

    Not applicable

    Other fees and costs

    Nil

    		 Other fees and costs such as activity fees, advice fees or insurance fees may apply. Please refer to the ‘Additional explanation of fees and costs’ section on page 11 of the Retirement Income Product Information Booklet

    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.

    A fee applies for our Retirement Options Service

    If you choose to make an appointment for our Retirement Options Service, a fee applies. You can ask us to deduct this fee directly from your account.

    Find out more about our Retirement Options Service.

    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

    A Transition to Retirement 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
    • Change how much you’re paid and how often by completing a payment variation form

    How to choose an income that suits your needs

    When you’re deciding the best way to receive your pension payments, it can help to think about:

    • Your lifestyle and expenses
    • 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 and maximum annual pension (see the section below)

    Learn more about the benefits of our Transition to Retirement Pension and if it’s right for you.

    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:

    Minimum annual pension rate

    Age

    Percent of account balance
    – default rate (%)

    Under 65

    4%

    65-74

    5%

    75-79

    6%

    80-84

    7%

    85-89

    9%

    90-94

    11%

    95 and above

    14%

    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.

    Use our example to work out your minimum annual pension

    Chris is 60 years old and has $200,000 to invest in a Transition to Retirement 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.

    Work out your minimum annual pension income

    Chris’ details

    Chris

    Your details

    You

    Account balance (A)

    $200,000

    Your account balance (A)

    		 

    Chris’ age (years) (B)

    60

    Your age (years) (B)

    		 

    Minimum annual pension payment (C)
    (from table above)

    4%

    Your minimum annual pension payment (C)
    (from table above)

    		 

    Chris’ minimum annual pension income

    Chris must receive a pension income of at least this amount for this financial year

    $200,000 x 4% = $8,000

    Your minimum pension amount (A multiplied by C)

    You must receive a pension income of at least this amount for this financial year

    		 

    A maximum limit also applies for your pension payments

    With a Transition to Retirement Pension you can select a maximum payment of 10% of your account balance as calculated at the start of each financial year.

    Use our example to work out your maximum annual pension

    Work out your maximum annual pension income

    Chris’ details

    Chris

    Your details

    You

    Account balance

    $200,000

    Your account balance

    		 

    Chris’ maximum annual pension income

    $200,000 x 10% = $20,000

    Your maximum pension amount (account balance multiplied by 10%)

    		 

    Ready to set up your regular pension payments?

    Find out How to open a Transition to Retirement Pension account.

  • Transition to Retirement Pension and tax

    When you open a Transition to Retirement 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 a transition to retirement product, 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 taxed up to 15%

    Investment earnings in your pension account are taxed at a concessional rate of up to 15%.

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

    Different parts of your pension are taxed differently

    Your Transition to Retirement 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
      2. 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
      3. 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 payments

    The two tables below provide a summary of how tax applies to your regular income payments from your Transition to Retirement Pension.

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

    Tax treatment for the 'Taxable component - taxed element' of your pension account
    Age Income stream payments tax withheld rate (plus 2% Medicare Levy)

    Under Commonwealth preservation age

    Taxed at your marginal tax rate, with no tax offset1

    Commonwealth preservation age - 59

    Taxed at your marginal tax rate, less a 15% tax offset on the taxable component

    60+

    Nil

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

    Tax treatment for the 'Tax-free component' of your pension account
    Age Income stream payments tax withheld rate (plus 2% Medicare Levy)

    Under Commonwealth preservation age

    Nil

    Commonwealth preservation age - 59

    Nil

    60+

    Nil

    You will pay no income tax if you’re aged 60 or over

    If you are 60 or over, your regular income stream payments from your Transition to Retirement Pension will be 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.

    Examples of Transition to Retirement Pension tax treatment based on age
    Example 1: Fiona, aged over 60 Example 2: Frank, aged under 60
    • Fiona is 63 and transfers $250,000 to a Transition to Retirement Pension
    • Her $250,000 is made up of a $210,000 taxable component and a $40,000 tax free component
    • She chooses monthly income payments of $1,600
    • Her monthly pension will include the following components:
      40,000/250,000 x 1,600 = tax free: $256
      210,000/250,000 x 1,600 = taxable-taxed: $1,344
      Tax free + taxable-taxed = $1,600

    Fiona is over 60, so the total amount of her pension payment will be tax free.

    • Frank is 57 and transfers $350,000 to a Transition to Retirement Pension
    • His $350,000 is made up of a $310,000 taxable component and a $40,000 tax-free component
    • He chooses monthly income payments of $1,400
    • His monthly pension will include the following components:
      40,000/350,000 x 1,400 = tax free: $160
      310,000/350,000 x 1,400 = taxable-taxed: $1,240
      Tax free + taxable-taxed = $1,400

    Frank is 57, so he will need to pay tax on the taxable-taxed component at his marginal tax rate (plus Medicare Levy of 2%). A 15% tax offset on the taxable component is available to reduce the amount of tax he needs to pay. He will not pay tax on the tax-free component.

    To learn more about how your Transition to Retirement Pension is taxed, you can:

    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 Transition to Retirement Pension account, including the tax considerations and investment plans available.

    Product Information Booklet

    Retirement Income Pension Product Information Booklet (Opens in a new window)Retirement Income Pension Product Information Booklet

    Retirement Income Pension Product Information Booklet

    Open an account

    Forms

    Online form through Member Online

    Download PDF printable form

    Retirement Income Pension application form  Printable form  (page 47 onward)

    Update your details

    Forms Online form through Member Online Download PDF printable form
    Change your details
    Proof of identity fact sheet             		Online form  |   Help guide
    How to provide proof of identity    		Printable form  |   Form instructions
    Proof of identity fact sheet
    Change your details and pension payment variation form Retirement Income Pension  Printable form |   Form instructions

    Our performance

    Information on our website Download PDF
    Investment returnsAnnual Fund Update
    Unit prices
    Forms Online form through Member Online Download PDF printable form
    Change investment plan Online formPrintable form  |   Form instructions

    Accessing your money

    Forms

    Online form through Member Online

    Download PDF printable form

    Withdrawal form Retirement Income Pension  Printable form  |   Form instructions

    Retirement planning

    Information on our website Download PDF
    Retirement Options ServiceRetirement Options Service fact sheet
     Questions for advisers fact sheet
    Get personal financial adviceObtaining personal financial advice

    Divorce and separation

    Information on our website Download PDF
    Divorce and your super
    Divorce and your Retirement Income Pension    		Your super and Family Law, GESB Super and Retirement Income fact sheet

    Complaints and Freedom of Information

    Information on our website Download PDF
    ComplaintsResolving your complaints brochure
    Information Statement - Freedom of InformationInformation Statement - Freedom of Information fact sheet
Page last updated 05 October 2023

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