Benefits of having a retirement income stream

Retirement income streams use your super balance to replace the regular income you're used to receiving during your working life.

Funding your retirement with a retirement income

A retirement income stream is set up with some (or all) of your super, which is then accessed via regular income payments, like a salary, which makes budgeting similar to how you would have done during your working life.

There a few considerations when thinking about retirement; have you thought about what may affect you?


You can have a retirement income stream even if you are still working, providing you have reached your preservation age.

see Transition to Retirement for more information.


Benefits of a retirement income stream

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  1.  Make the most of the tax benefits

    If you start a retirement income stream through super, by becoming a Telstra Super RetireAccess member, investment earnings are tax-free regardless of your age. Income paid to you from your retirement income stream is tax free if you are 60. If you are over preservation age (56 as at 1 July 2015) but under 59 years old, you are generally taxed at your marginal tax rate, however, you receive a 15% tax offset.   

    Should you choose to invest money outside of super, both income and capital gains will be taxed at your applicable marginal tax rate (MTR), which may be up to 45%, excluding the Medicare levy and Budget Repair levy.

    learn more about tax savings on investment earnings.


  1.  Tailor your retirement income to suit you

    With a retirement income you have the flexibility to choose your income payment frequency, and payment amount, although minimum annual income payment standards do apply.

    Minimum annual income payments

       Age* % of account balance**
       Under 65
       65-74  5.0%  
       75-79  6.0%  
       80-84  7.0%  
       85-89  9.0%  
       90-94  11.0%  
       95+  14%  

    * Age at 1 July in the financial year when payment made or in the year that income payments commence (age at commencement date of income stream).
    ** On 1 July in the financial year when income payments are to be made.

    To calculate the annual minimum payments applicable to your balance, use our Income stream payments calculator.


    Maximum annual income payments

    There is no maximum drawdown (unless you are in a Transition to Retirement income stream) and therefore you can take as much as you want, however, be considerate of how long your money will last.  Under the Transition to Retirement rules, the maximum annual income payment is 10%. 

    Choose your investment strategy

    The other advantage is that you can choose how your money is invested so you can adopt an investment strategy with a level of risk that you are comfortable with.

    see Investing in retirement for more information.

    What happens if I die?
    If you die before the balance is exhausted, you can arrange for the income payments to continue to an eligible reversionary beneficiary, or have a lump sum paid to your beneficiary.

     learn more about Estate Planning.

    What type of retirement income is right for you?

    Follow our simple step-by-step guide to find out which retirement income may best suit your needs.

Want to chat more?

With the right advice, you can gain a sound understanding of your retirement options and start implementing a retirement income strategy that best suits you.

Telstra Super Financial Planning can provide you with expert guidance on retirement income streams; give them a call on 1300 033 166 to discuss your advice needs.

Ready to take the next step?

Remember, a retirement income stream requires careful planning! But if you are ready to apply, here are some steps you can take:

use our handy checklist to make sure you’ve got everything you need
download the Income Stream Application Telstra Super RetireAccess form.