Maximising retirement income

Australians can no longer rely solely on social security payments to provide for their retirement. And for most of us, the thought of downgrading our standard of living on retirement does not appeal. So if you've reached retirement age, it's time to make the most of the money you've worked so hard for.

It means investing your capital in the most tax effective way so it continues to earn income for you. Ideally, this means you can live comfortably for all your retirement years. Of course, this may be dependent on your starting amount, but Zurich has a number of ways to help you achieve this goal. Because when you retire, the last thing you want to worry about is money.

Zurich Account-Based Pension

If you're looking for a convenient, flexible and tax effective retirement income, this may be an ideal solution. Our flexible payment arrangements include a choice of:

  • The total amount you receive each year subject to a minimum limit set by the government (if a non-commutable pension is purchased, annual income will be subject to a maximum limit of 10 per cent of the account balance)
  • Frequency of payment (monthly, quarterly, half-yearly or yearly)
  • How you are paid (cheque or direct credit)
  • Which investment option it is paid from and in what proportions (if more than one option is selected).

Zurich offers a choice of investment options, of which you can choose to invest in a combination of up to 10 of these. So you can decide how your money is invested. Zurich has a proven track record when it comes to investment performance - so chances are, your money can be made to last longer.* And let's not forget about tax. Once you turn 60, your pension payments will be tax free. If you are under 60, tax is payable at marginal rates on the assessable part of income payments however the full superannuation pension tax offset of 15 per cent will apply to your account-based pension if you are aged 55 to 59 years old.

  • Any lump sum tax that may be due on withdrawal from a superannuation fund would generally be avoided on transfer
  • You benefit from the fact that there is currently no tax paid by Zurich on investment earnings
  • Pension payments may be partially or wholly tax free
  • You can cash in part or all of the balance of your account at any time (except if you purchase a non-commutable pension)
  • A minimum starting investment of $20,000 is required.

* Past performance should not be taken as an indication of future performance.

Non-commutable account-based pension (transition to retirement pension)

The Zurich Account-Based Pension can be used to commence a transition to retirement (non-commutable) pension when you reach preservation age (currently age 55). A transition to retirement account-based pension generally operates the same way as an account-based pension however there are restrictions on when the capital invested can be accessed and the maximum level of income which can be drawn.

If you commence an account-based pension with superannuation funds released as a result of you attaining preservation age (i.e. you purchase a non-commutable account-based pension), generally you will not be able to withdraw capital amounts or cash in your account-based pension unless you meet a condition of release that has no cashing restriction (e.g. permanent retirement after age 55, ceasing employment after attaining age 60 or attaining age 65). You may transfer your pension back to the accumulation phase of superannuation, however any preserved component will not be able to be accessed until you reach a condition of release as described above.

Non-commutable account based pensions are subject to a maximum payment level of 10 per cent of the account balance. This means that if you purchase a non-commutable account based pension you will have to choose an annual payment amount between a specified minimum and maximum level.

More information

For more information, please contact your financial adviser.

Zurich can assist you with contacting a financial adviser.

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