Start a regular income from your super

Would you like to fund the lifestyle you want with a regular tax-free income? We can help make it possible.

Why a Catholic Super Account Based Pension?

Your income is tax-free

Choose a regular payment date straight into your bank account.

You can withdraw lump sums whenever you like.

The money in your account continues to be invested.

Save on fees.

Flexibility to suit you.

Is an Account Based Pension right for you? Learn about your options in our handy guide.

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Frequently Asked Questions

What is an Account Based Pension (ABP)?

An ABP offers regular, flexible and tax-effective income from your super. The main ways to qualify for an ABP are turning 65, or if you have fully retired and reached your 'preservation age' (generally between 55 and 60 years).

What are the benefits of an ABP?

Your super savings remain invested and earnings are tax-free. No tax is payable on income payments if you are 60 or over. You can access your money at any time and make additional lump sum withdrawals if you need to.

How does an ABP work?

An ABP allows you to receive a regular income from your super savings when you retire.

You are able to choose:

  • how much you want to transfer to your ABP from your super savings, subject to the Government’s transfer balance cap of $1.7 million
  • the size and frequency of your payments (must be more than the government mandated minimum)
  • how you want your money invested; and
  • to receive additional lump sum withdrawals if you need to.

Is an ABP income taxable?

Investment earnings in your ABP account are tax-free. If you are 60 or over no tax is payable on income payments and lump sum payments you receive.

Can you still work and have an ABP?

When you turn 65, you don’t have to be retired or satisfy any special conditions to get unlimited access to your super savings, so you can continue to work or return to work if you choose to do so.

Is it worthwhile opening an ABP for tax reasons?

In super, all earnings in your account are taxed at 15% whereas once you transfer your super savings to an ABP they are generally tax-free.

How long will my ABP income last?

How long your income from your ABP lasts depends on:

  • the amount of money you transfer from your super savings
  • how much you take in payments each year (including any lump sum withdrawals)
  • how much you pay in fees
  • earnings from investment returns

Are Account Based Pensions assessed by Centrelink?

Account based pensions are assessed under the deeming rules for Centrelink/DVA income test for income support payments such as Age Pension, Service Pension, Disability Support Pension, and Carers’ Payment. This assessment also applies for some other payments and allowances. Our financial planning team can assist you with this process.

How does an ABP differ from a Transition to Retirement (TTR)

An ABP allows full access to your super savings, enabling you to withdraw a regular income plus lump sums if you need them. A TTR pension is for members under age 65 who are still working but may be interested in reducing their working hours ahead of their retirement. It is designed to support you while you continue to work by allowing you to receive an income from your super up to a maximum amount of 10% of the balance per annum. 

We'll make it easy

With Catholic Super, you have the support of a personal financial planner who understands how to make the most of your super for your individual situation.