Investing in an Income Stream
Investing in a Super SA Income Stream is a tax-effective way of accessing your super as a regular income as you transition to and throughout retirement.
Who can invest in the Super SA Income Stream?
You can invest in the Income Stream if:
- you're over your Commonwealth Government preservation age; and
- you’re a current active or preserved member of one of the SA public sector super schemes, or
- you’ve received an entitlement from one of these schemes in the last 12 months.
Your partner can also purchase a Super SA Income Stream.
Find out how to purchase the Super SA Income Stream.
You don’t have retire to access an income stream
Want to cut back your working hours or boost your super?
If you’re a Triple S member and have reached your Commonwealth Government preservation age you can access your super while you’re still working through an Early Access to Super (EATS) arrangement.
- you can access any restricted or preserved amounts that would otherwise be preserved until you retire completely.
- the Commonwealth Government has set a maximum yearly withdrawal amount of 10%.
If you’re a Lump Sum Scheme member you're able to take advantage of a Transition to Retirement (TTR) arrangement.
Early Access to Super (EATS) Strategy
EATS lets you invest all or a part of your super in an income stream, where you access your money through regular income stream payments. This can be an effective strategy to supplement your income in the following circumstances: ·
- Wealth creation: salary sacrifice into Triple S and supplement your reduced income through an income stream. You’ll reduce your tax so you can put what you save into your super. ·
- Easing into retirement: reduce your working hours and use an income stream to make up any income shortfall.
In its 2016 Budget the Commonwealth Government proposed changing the tax treatment of investment earnings for income streams used as part of a TTR or EATS strategy from July 2017. This has now been legislated and will be effective from 1 July 2017.
Financial advice and information
Financial advice is strongly recommended when considering an EATS or TTR arrangement. It’s important you are aware that your super may have an effect on the level of benefit you’re entitled to receive from Centrelink in retirement. You can contact Centrelink Retirement Services on 13 23 00.