Superannuation can be taken as a lump sum or converted into an income stream. A range of retirement income products on the market give you the opportunity to choose either option.

Remember:

• Payments from superannuation and retirement income products are tax free to all retirees over 60 years of age.
• If you are under 60, there may be tax advantages if you take your superannuation as an income stream rather than a lump sum. For example:
  • You may avoid paying lump sum tax
  • The earnings on super held in your pension account will not be taxed
  • You could be entitled to further tax advantages through a tax rebate.
• When applying for the Age Pension, certain income stream products are exempt from the assets test used to assess your eligibility. For example, if you purchased your income stream product before 20 September 2004 you may find it is 100% exempt from the assets test. Others are 50% exempt. Ask your financial adviser for details.