Account-Based Pensions: a smart choice for a regular retirement income

An account-based pension (ABP) is a retirement income option for members who have stopped working and are eligible to access their super. It's a way to receive a regular, flexible and tax-effective income from super after reaching preservation age. It's important to remember that an ABP provides income as long as your super funds last, but it's not a guaranteed income for life.

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How an Account-Based Pension works

An Account-Based Pension is ideal for members at preservation age. It's a tax-efficient way to continue to grow your super while paying yourself a regular income in retirement. You can control withdrawal amounts and frequency within certain limits to tailor it to your retirement income needs, as well as retain the ability to take lump sum withdrawals if necessary. You can also choose from various investment options so your investment strategy always aligns with your risk tolerance and investment goals. This pension plan is also tax-free for members over 60 who need additional funds to compliment income from sources such as the aged pension or other Centrelink benefits.

Account-Based Pension key features

Minimum investment amount


Payment frequency

Twice monthly, monthly, quarterly, half-yearly or yearly.

Payment amount

You can choose any income amount, there are no limits.

Investment options

There are 10 investment options available, including a self-managed option, the Direct Investment option.

Lump sum withdrawals

You can make lump sum withdrawals from your legalsuper account at any time. This is also known as a 'commutation'. Tax will be deducted from the lump sum accordingly if you are under age 60. Over age 60 there is no tax payable on lump sum withdrawals. More info can be found on the ATO page.

Account closure


You can roll back your retirement pension account in to your regular super account at any time, or you can withdraw the full value to close your account. You are not locked into a Retirement Pension account for any defined term.

Need more help? Contact our Client Services team

As a member, you can get personalised support from our Client Services team at no cost or obligation to assist with your retirement goals.
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