Eight key facts for understanding superannuation pensions, including your options with NGS Super.
There are lots of different names used for pensions. A couple of common ones are ‘allocated pension’ and ‘account-based pension’.
At NGS Super your pension account is referred to as your NGS Income Stream. NGS Super chose this name because you can draw down on your super as a regular income stream—either fortnightly, monthly, quarterly, half-yearly or yearly, or in lump sum amounts as you need them. If you find you need payments more or less frequently, you can change the frequency of your payments online. Here are some key facts about the NGS Income Stream.
1. You can open an income stream account when:
- You reach your preservation age (see the table below) and you have retired from the workforce. If you are still working but have reached your preservation age, you may be eligible to open a Transition to Retirement Pension.
- You leave employment after age 60.
- You meet other qualifying conditions.
|Your date of birth||Preservation age|
|Before 1 July 1960||55|
|Between 1 July 1960 and 30 June 1961||56|
|Between 1 July 1961 and 30 June 1962||57|
|Between 1 July 1962 and 30 June 1963||58|
|Between 1 July 1963 and 30 June 1964||59|
|After 30 June 1964||60|
2. You only need a minimum of $20,000 to set up an income stream with NGS Super, and there are no joining or withdrawal fees.
3. When starting an income stream, it’s a good idea to bring all your super accounts together to create a single ‘pot’. Once your income stream is set up, you won’t be able to make contributions or transfer other super savings into your account (without ‘resetting’ your account), so it’s important to have everything in the one place from the start.
4. An income stream with NGS Super has low fees and you can choose from a range of investment options, from conservative to high growth, or you can invest in the NGS Self‑Managed product.
5. An income stream with NGS Super offers a flexible range of estate-planning options, including the ability to nominate either binding or non-binding beneficiaries in the event of your death.
6. If you are aged 60 or over, your income stream payments will be tax-free. If you are aged between 55 and 59 years of age, tax may be payable on your income-stream payments.
7. You must receive a minimum one-off payment from your income-stream account each financial year—these minimums depend on your age.
8. NGS Super can assist you if you are thinking of setting up an income-stream account—simply call 1300 133 177.
The fund can help you with your application and guide decisions such as your income-stream payment amounts, frequency of payments, beneficiary options and investment options.
Information provided in this blog may have changed since the time of writing. You should confirm the information is current before relying on it.