Income Stream

Cbus Super Income Stream

Cbus has its own account based income stream. This means you can stay with Cbus even after you retire. Income streams, often referred to as allocated pensions, are among the most popular methods for providing income for retirees. Whether you are ready to retire altogether or you wish to take a more gradual approach to retirement, a Cbus Super Income Stream is a great way to provide you with a regular income in retirement.

How does the Cbus Super Income Stream work?

When you invest in the Cbus Super Income Stream, an account in the Fund is established in your name. The account works on an accumulation basis, which means that investment earnings are distributed to your account, whilst payments to you, along with fees and charges are deducted from your account.

A Cbus Super Income Stream can have the following advantages:

flexible, tax free income once you are over age 60;
tax free access to your capital once you are over age 60 and have permanently retired;
no loss of capital on premature death;
investment choice;
tax free investment earnings after age 60;
access to a range of professional investment managers across different asset classes; and
favorable treatment under Centrelink / Department of Veteran Affairs means tests, when compared with other income-producing investments.

The table below outlines how the Cbus Super Income Stream works for those who are looking for an income when permanently retired and for those who are looking for an income to supplement their wage as they transition into retirement.

For Retirees

Transition to Retirement facility

A Cbus Super Income Stream account must be opened with an ‘unrestricted non-preserved' superannuation payout. ‘Unrestricted non-preserved' refers to the part of your payout which is immediately available to you in cash - eg. the portion you are not required to ‘preserve' in a superannuation fund in accordance with Government requirements. Generally, anyone who is at least age 55 and has permanently retired from work will have a non-preserved payout.

Alternatively, you must satisfy one of the following requirements. You have:

- reached your Preservation Age and intend to never again become gainfully employed, either on a full-time or part-time basis; or

- resigned or retired from an employer since turning age 60,

or you must be:

- aged 65 years or over; or

- permanently incapacitated (at any age).

A Cbus Super Income Stream also caters for those people who want to remain in part-time or full-time employment, receive some income from their superannuation, and then gradually reduce their working hours until they finally retire.

You must have already reached your Preservation Age and your Cbus Super Income Stream account must be opened with a superannuation payout. This payout may be either ‘preserved' or ‘non-preserved'. While you are in a ‘Transition to Retirement' phase, your Cbus Super Income Stream is ‘non-commutable'. This means that you will be unable to withdraw lump sum amounts until you permanently retire from the workforce.

For more information about the Cbus Super Income Stream please call our Service Centre on 1300 368 212 or download the Cbus Super Income Stream Product Disclosure Statement.