How do I access my superannuation savings to fund my retirement?

There are three steps to accessing your superannuation account for your retirement:

1. Open a smartMonday PENSION account using the application form.

2. Confirm the amount you want to receive, and how frequently you receive payments.

3. Decide if you want to withdraw a one-off amount to get major expenses out of the way.

Who can open a smartMonday PENSION account?

You can open a smartMonday PENSION account if any of the following apply:

• You are permanently retired and have reached your preservation age, or

• You leave employment at or after reaching 60 years of age, or

• You are over age 65, or

• You are permanently incapacitated or terminally ill and rolling in benefits from their super fund.

When you open a pension account, you make a written declaration that you have a genuine intention to retire. This means that you plan to leave the workforce and don’t expect to work more than 10 hours per week again.

Note: you can work less than 10 hours per week and still be considered officially retired with full access to your superannuation savings.

How much should I withdraw?

You decide the amount you receive as regular payments and how frequently you receive them – monthly, quarterly, half-yearly or annually – although the government does set a minimum level of annual income that must be drawn from a pension account (see table below).

Working out how much you need is important. The smartMonday calculators are a good place to look at your projected retirement balance as well as review how your spending might change when you retire. Our smartCoach team can also help you figure out how much you have now and how much you might need to reach your goals.

Minimum withdrawal

Income payments from your smartMonday PENSION have a minimum annual limit based on your age and account balance at the start of your pension and, following that, at the start of each financial year.

You can work out the minimum annual drawdown you must take by multiplying the balance in your account when you open your pension account and then at the start of each financial year, by the percentage relevant to your age as shown in the table below.

Please note that your minimum withdrawals will be pro-rated based on the date you commence your smartMonday PENSION. Minimum withdrawals are calculated on a financial year basis (July to June).

The maximum you can hold in your smartMonday PENSION account is $1.9 million. Any amount above this limit may be kept in a superannuation (accumulation) account. Any amount (across all of your superannuation accounts) above the $1.9 million limit set by the government may be subject to additional tax. Up to this limit, your super money can stay invested in a tax-free environment.

Lump sum payments from your smartMonday PENSION account (for a holiday, car or helping out your kids) do not count towards meeting the minimum annual payment requirements. Lump sum payments do not have to be taken in addition to your ongoing income, however the option is available should you need to.

Do I have to move all my super into a pension account?

No, you can leave a portion of your superannuation in your current accumulation account. However you cannot add to an account-based pension once it has commenced. If you need to transfer more super benefits into your pension you will either have to start a second pension account or, commute (i.e. convert) the remaining pension account balance and then set up a new pension.

The minimum balance you can hold, when you set up your pension account, is $20,000.

Please note, if your current pension commenced prior to 1 January 2015 this strategy may affect your Centrelink benefits. Please seek advice before taking any action.

Can I make additional contributions to my super when I have a pension account?

As noted above, you cannot add to a pension account once it has commenced. However, you can make super contributions to your super account until age 75 (even if you are not working).

How will my pension be invested?

You have control over how your pension is invested. smartMonday has a range of investment options for pension accounts.

It can be helpful to seek financial advice, or to speak to a smartCoach, about your pension investment options.

There is no ‘best’ strategy for investing, however, if you’re expecting to be retired for more than 20 years, then such a long-term investment suits at least some growth-style assets such as shares and/or property.

The best place for your savings depends on your personal circumstances. Regardless of how much in savings you have, a common dilemma for retirees is how to invest their funds: it’s common to hear our members say ‘If most of my money was in cash, I’d soon run out of it’ or ‘I wouldn’t be able to sleep at night if most of my money was in shares’.

This is where the ‘bucket’ strategy – allocating your money for different uses – may come into play. A typical approach is to split your savings into three buckets.

• Bucket #1 is used to hold enough money invested in cash, or cash equivalents, to fund your short-term living expenses, say for a year or more.

• Bucket #2 holds funds for emergency use.

• Bucket #3 is invested in a diversified mix of growth-style investments.

With this approach you avoid the risk of having to sell assets when their value might be down, because you’ve already set funds aside. If this approach appeals to you then talk to your financial adviser, or a smartCoach, to ensure this strategy meets your personal circumstances.

Can I keep track of my account and payments?

You can easily track your payments and full account details through your online login.

Regular income payments are made from your smartMonday PENSION account until your account balance is exhausted. You can make changes to your payments by contacting us.

Do I need to nominate a beneficiary?

While nominating a beneficiary is not compulsory, doing so ensures we know who you would like to receive your account balance, plus any insurance benefit you have, in the event of your death. We have detailed explanation of nominated beneficiaries here.

Not quite ready to go into full retirement?

If you aren’t ready to retire but would like to start working less once you’ve reached your preservation age, a smartMonday PENSION transition to retirement (TTR) might be the right choice for you. A TTR allows you to supplement your income with regular payments from your super while you transition to full retirement. Check it out.

I've still got questions....

Check out our retirement FAQ page.Get in touch with a smartCoach

• Live chat with a smartCoach on our website when the speech bubble pops up

• phone 1300 262 241

• email smartcoach@smartmonday.com.au

I'm ready

You can find the smartMonday PENSION application form here.

Our smartCoach team can help you with any queries about your pension, and support you in completing the application form.

What happens next?

Once you have completed and sent us the application form we will open your pension account and move your funds as you direct.

You will be able to see your investments (including your super account, if you continue to hold one) when you log in to smartMonday.

Your payments will be deducted from your pension account and deposited into your bank account at the frequency and start date that you request.