Most working Australians are familiar with the standard superannuation accumulation account.
Pension accounts differ in that they allow you to start drawing your super as an income and are generally only available when you reach your 'preservation age'.
At this age you can withdraw your super as a lump sum, or leave it invested in super and take it as income, as a pension.
Choosing a pension has tax advantages over withdrawing it as a lump sum.
What are my Options?
legalsuper offers two pension products:
1. legalsuper 'Transition to Retirement' Pension
This pension pays you an income while you are still working.
To better understand how a Transition to Retirement Pension works view our factsheet here.
2. legalsuper Pension
This pension is available to people who want to retire completely and support themselves by setting up an income stream from their super.
To better understand legalsuper's pension options view our pension brochure here.
What are the Benefits?
A legalsuper pension allows you to enjoy the benefits of membership for life:
- a minimum starting balance of as little as $20,000
- same low fees and no commissions
- investment earnings in a legalsuper Pension are tax-free (this does not apply for a legalsuper Transition to Retirement Pension)
- tax-free pension for over 60s
- 12 investment options including a Direct Investment Option (DIO)
- choice of payment frequencies – twice monthly, monthly, quarterly, half-yearly or yearly.
- nominate your beneficiaries, including binding nominations
- online account access
- dedicated pension member contact centre
- switch investment options as frequently as weekly (a buy/sell spread may apply)
- access to client services team
- income payments subject to Government minimum and maximums
- retain your insurance cover by having your super account and your pension account working alongside each other.