Transition to Retirement

An ESI Super Income Stream provides you with an income while you are transitioning to retirement and is available to you once you reach your preservation age (see below). It means you can access some or all of your superannuation as an income stream while you are still employed. You should obtain advice from a licensed financial adviser before starting a transition to retirement strategy.

The maximum annual amount you can draw from your income stream under transition to retirement is 10% of your income stream account. Once you retire permanently or turn 65, the 10% limit no longer applies and you can withdraw lump sums.

Except for the 10% maximum income limit and the restriction on lump sum withdrawals from your Transition to Retirement Income Stream account, all other features of the income stream are the same as a fully retired member's ESI Super Income Stream.

A snapshot of your ESI Super Transition to Retirement income stream

	Transition to Retirement
Who can invest?	You can if you have a super benefit of at least $30,000 and have reached your preservation age (see below).
Why would you invest?	You: Have reached your preservation age Want to reduce your working hours but not retire Want to supplement your full time or part time income with payments from your super Want flexibility in the income you receive each year Want to structure a tax effective income source
Choosing your  income	You choose how much income you receive each year, subject to a maximum and minimum legislated amount. The maximum is 10% of your account balance. The minimum is calculated in the same way as the 'retirement' income stream.
Lump sum withdrawals	Lump sum withdrawals are generally not permitted. However, if you satisfy a condition of release, you can transfer your Transition to Retirement Income Stream to an ESI Super 'retirement' Income Stream.
Lump sum withdrawal fee	$0
Contributions	Once commenced you cannot make additional contributions to your transition to retirement income stream. You can, however, open a second account with a minimum contribution of $30,000.
Frequency of payments	The annual income you select will be paid monthly into your nominated bank account between the 24th and 28th day of each month.
How long will your income stream last	Your income stream does not have a fixed term so it will last as long as there is enough money in your account.
Investment choice	You can choose any combination of the available investment options for the investment of your income stream account.
Tax	Tax free if you are over 60. If you are under age 60 tax will be charged at your marginal tax rate with a 15% tax offset available if you are aged between 55 and 60.
Death benefits	You can nominate a dependant as your 'reversionary beneficiary' when you start your ESI Super Transition to Retirement Income Stream. This means, if you die with money in your account, your reversionary beneficiary will continue to receive your income stream. If you choose not to name a reversionary beneficiary, you can nominate dependants as recipients of your account balance as a lump sum death benefit.

Preservation age

 

If you were born …	Your preservation age is:
Before 1 July 1960	55 years
On or between 1 July 1960 and 30 June 1961	56 years
On or between 1 July 1961 and 30 June 1962	57 years
On or between 1 July 1962 and 30 June 1963	58 years
On or between 1 July 1963 and 30 June 1964	59 years
On or after 1 July 1964	60 years

More information

To find out more about an ESI Super Transition to Retirement Income Stream click on the following link to download a copy of the ESI Super Income Stream Product Disclosure Statement or call ESI Super.