LOGIN Retirement explained A pension from a super fund is a popular way for Australians to manage their retirement savings. Investing your super in a pension rather than taking it as a lump sum can make your retirement savings go further. A pension is a special investment structure with tax benefits created by the government to help people manage their super savings in retirement. By investing your super and any other retirement savings in a pension, you can access your money as a regular income in a tax-effective environment. Help your retirement funds go further You can invest in the same assets, such as cash, shares or property, inside or outside a pension. The difference is that the government provides tax savings on investments inside a pension as an incentive to convert your super into a regular income stream to support you in retirement, rather than take it as a lump sum. The lower tax rates mean the same investment in a pension will go further than if invested outside a pension. Tax savings on investments inside a pension Investment earnings on account-based pensions and death benefit income streams are tax free, while pre-retirement pensions are taxed 15%. This means you could be better off than: keeping your money in super, where investment earnings are taxed at 15% (this benefit doesn’t exist for pre-retirement pensions), or taking your super as a lump sum and putting it in the bank, where you’ll pay personal income tax on any investment earnings. Tax free income and withdrawals if you’re over age 60 If you’re aged 60 or older - your pension payments and any lump sum withdrawals are tax free. If you’re between preservation age and age 59 - a portion of your pension payment is taxed, but you may be eligible for a 15% tax offset, reducing the amount you have to pay. The tax payable on income from death benefit income streams will depend on your and your spouse's age. For more information read the Mine Pension Product Disclosure Statement. Keeping control over your money Unlike super, where you must keep your money invested until you retire, when you invest in a pension you get the tax benefits and you’re free to withdraw at least $2,000 whenever you want, including cashing in your entire pension at any time. The age pension Despite our increased reliance on super to fund our retirement, many Australian retirees continue to supplement their retirement income with at least a part government age pension. Even if you only qualify for a part pension, this can make a difference to your retirement lifestyle, as you’ll automatically qualify for a pension concession card and associated discounts. How much super can you save and still get the age pension? See our Super Savings and Government Age Pension fact sheet for more information about the aged pension. Email us Sign up Contact us MySuper Product Dashboard About us Super PDS Pension PDS Privacy Policy Financial Services Guide Contact us Complaints Issued by AUSCOAL Superannuation Pty Ltd ABN 70 003 566 989 AFS licence 246864 Trustee for the Mine Superannuation Fund ABN 16 457 520 308. This is general information only and does not take into account your financial situation, needs or objectives. Before acting, consider if the information is right for your needs and circumstances and read the relevant Product Disclosure Statement. The Target Market Determinations (TMD) for our financial products can be found at mine.com.au/tmd. This information is based on our understanding of current Australian laws and assumes they will remain unchanged. Any links to external sites are for information purposes only and are not an endorsement. We take no responsibility for the content. Advice is provided by Mine Super Services Pty Ltd ABN 49 051 315 014 AFS licence 502700.