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More information

To learn more read the Product Disclosure Statement (PDS):

Your APSS Pension PDS
 

 



Your pension options

APSS Pension

The APSS Pension enables you to continue your APSS membership when you retire, potentially for the rest of your life. You can also use the APSS Pension as part of a transition to retirement strategy.

To start an APSS Pension account, you need to have reached your preservation age and have at least $20,000 to invest. This amount will typically come from an APSS Member Savings account, but you can also use your APSS Defined Benefit if you’re entitled to one, plus savings in other super funds and/or an after-tax contribution (e.g. from bank savings). If transitioning to retirement, note that any Member Savings must be used before any APSS Defined Benefit you’re entitled to, and you can only use up to 50% of your Defined Benefit.

Your APSS Pension account works exactly the same way as Member Savings accounts, offering you the same investment options. The key difference is that your APSS Pension account has regular income payments coming out, which are then deposited into your bank account. Also you can’t contribute.

Features

The APSS Pension gives you:

  • Flexibility to choose how much you get paid and when (within limits).
  • Regular payments made directly into your bank account.
  • Ability to withdraw extra money when you need it (within limits).
  • Opportunity to pay less tax - your savings are invested tax effectively, and once you turn 60, regular payments are tax free.
  • Investment choice over how your APSS Pension account balance is invested.
  • Relatively easy choices compared with deciding how to invest a lump sum.

Your pension options

Suppose that you want to cut back your working hours while transitioning to retirement but not reduce your income. Your APSS Pension account can help you maintain the same level of income by replacing the income forgone by cutting back your working hours. It might also be possible to use it to reduce the overall tax you pay and increase your retirement savings before you retire – ask you financial adviser for details.

When you retire, you basically have two choices.

  • You can withdraw your super as a lump sum. It’s then all up to you to work out where to invest that sum yourself.
  • Your other choice is to keep it invested in the APSS and draw regular income payments from it by opening an APSS Pension account. This might be more tax effective. It might mean that your super lasts longer than taking it as a lump sum and being tempted to spend a lot of it. How long your money lasts in retirement is an important consideration because life expectancies have increased significantly and are likely to keep increasing as we make healthier lifestyle choices and have access to advancing medical care and treatments.