What is an income stream?

Whether you’re ready to retire altogether or you wish to take a more gradual approach, 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 is established in your name. The account works on an accumulation basis, which means that any 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;
  • 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 top up their wage as they transition into retirement.

 

Still working?
Permanently retired?

When you’re permanently retired, you can move your super into Cbus’ Super Income Stream and receive regular income payments.

To be eligible to join the Cbus Super Income Stream you must satisfy one of the following requirements:

  • reached your Preservation Age (currently age 55) and intend to never again become gainfully employed, either on a full-time or part-time basis;
  • 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).

Cbus Super Income Stream has a Transition to Retirement facility that lets you remain in part-time or full-time employment while receiving an income from your super. You can then gradually reduce your working hours until you finally retire.

To be eligible to access Cbus’ Super Income Stream Transition to Retirement facility, you must:

  • have already reached your Preservation Age (currently age 55); and
  • open your Cbus Super Income Stream account with a superannuation payout.

Note: whilst you are in the 'Transition to Retirement' facility you can't withdraw a lump-sum payout until you satisfy a condition of release and you can only take a maximum of 10% of your account balance each year.

 

Receiving regular super payments