Cbus Super Income Stream (SIS)
A super income stream keeps your money invested and working for you in retirement. It provides regular and tax-effective income, during your final years of work and into retirement. For an explanation of Super Income Stream accounts, watch this short video below.
A steady pay cheque even after you stop working
What you need to open a Super Income Stream (SIS) account
There are limits on how much you can invest
The Government has limited the amount of super you can transfer into tax-free retirement accounts (like our Fully Retired option) to $1.9 million if starting your first retirement account in the 2023/24 financial year. This is called the transfer balance cap, which is a lifetime limit on how much you can put into tax-free retirement accounts, pensions and annuities, with Cbus and any other super funds. Tax penalties may apply if you exceed the cap, and any amount over the cap will need to be withdrawn or transferred to a super account. You can find your personal transfer balance cap by logging into myGov and going to the ATO site.
This limit doesn’t apply to the Transition to Retirement option.
Alby, a recently retired member
Alby says, “It's not all about work, it's about the later years in life and enjoying yourself”.
Alby always thought you needed one million dollars to retire, but soon realised that this is not true.
Your preservation age
Access to your super is generally restricted until you reach your preservation age. Depending on your date of birth, your preservation age will range from 55 to 60.
|If you were born:||Your preservation age is:|
|Before 1 July 1960||55|
|1 July 1960 to 30 June 1961||56|
|1 July 1961 to 30 June 1962||57|
|1 July 1962 to 30 June 1963||58|
|1 July 1963 to 30 June 1964||59|
|1 July 1964 or after||60|
1. Set up your account and payments
When you open your account, you decide how much you want to receive as a regular payment and how often you’d like to receive payments.
You can change the amount and frequency of payments at any time, as long as your new payment amount falls within government limits.
2. Receive regular payments while your money stays invested
Your regular payments are deposited directly into your nominated savings account.
Your remaining account balance will continue to be invested - less fees, regular income payments, withdrawals and tax (if applicable).
3. Payments continue until your account balance runs out
You’ll continue to receive payments until the money in your account runs out.
When you die, any remaining balance of your account will be paid to your beneficiaries as a cash payment or regular income.
How to apply for a SIS account
Whether you’re an existing Cbus member or new to us, you can apply for a SIS account via the application form in the Cbus Super Income Stream PDS (PDF).
Let us do the hard work
We recommend you speak to us before you apply, to help you make the right decisions. If you’re already a Cbus member, your existing Cbus account can be transferred straight across.
Member access to a financial planner
As part of your Cbus membership, you have access to our team of financial advisers over the phone who can assist you in planning your retirement.
Cbus Advice Services can also refer you to an accredited financial planner who meets strict professional qualification and service criteria as set by Cbus and the Financial Advice Association Australia Limited (FAAA).
The financial planners offer advice on a fee-for-service basis, with any fees agreed with you in advance. You may be eligible to have the financial planner payment fees deducted directly from your Cbus account.
You don’t need to wait until you stop working
With the Transition to Retirement (TTR) option you can access your super through a super income stream while you’re still working.
To be eligible, you need to be between preservation age and 65 years. While you’re working, any super contributions will continue to be paid into your Cbus accumulation super account.
You can use a TTR income stream to:
work part-time and use income stream to supplement your income
work full-time and use an income stream to provide some or all of your income. You could then salary sacrifice more of your wages into your accumulation super account, providing potential tax savings.
Learn more in the Transition to Retirement fact sheet (PDF).
Take advantage of tax benefits
Generally, no tax is payable when you transfer your money into a super income stream. There's also no tax on your investment earnings if you're in the Fully Retired option.
If you’re under 60, your super income stream payments are taxed lower than other forms of investment. Some of your superannuation income stream may be tax-free and if you’ve reached preservation age you’ll receive a 15 per cent tax offset on any taxable proportion.
If you’re 60 or over, the super income stream payments you receive are tax-free.
You could be eligible for an income stream tax refund
If you're using an existing Cbus super or TTR account to start your Fully Retired income stream, Cbus will refund money we’ve held from your account that would have been paid as tax. If you’re eligible, the amount will be automatically credited to your new account the day it is opened. Read the Income Stream tax refund fact sheet (PDF) for details.
To find out how much you could receive, call us on 1300 361 784 and follow the prompts to request a balance quote, or if you are over preservation age, login to the member portal and go to the Balance quote page.
Our consultants can provide guidance on what may suit you and your circumstances. Before you transfer your balance to a fully retired income stream, you should request a balance quote if you think you might be close to your personal transfer balance cap.
Come along to a retirement webinar
Learn more about retirement and super at one of our seminars. They're relaxed and informal so anyone can join, and they're provided as part of your membership.
Topics include retirement planning, the government Age Pension and transition to retirement.Find a seminar
^Estimated total retirement income in year one of $32,725, comprising of $4,211 from the Cbus Super Income Stream account and $27,664 from the Government Age Pension. According to ASFA (a super industry expert), a single person needs around $31,867 a year to live a modest lifestyle in retirement (e.g. basic activities). For further information, see ASFA retirement standard: superannuation.asn.au/retirement-standard. The income from the Cbus Super Income Stream and Age Pension is projected to increase by 2.5% pa, to cater for inflation and increase in living standards. The income from the Cbus Super Income Stream is projected to last until age 92. The Government Age Pension entitlement is based on current Centrelink income rates using the following assumptions: Single person, homeowner, $25,000 in personal assets. Account-Based Pension investment return of 5.75% p.a. after fees and taxes. Administration fee of $78, with 0.19% asset-based administration fee. Calculated using the Cbus Retirement Income Estimate Calculator as at 05/10/2023. The amount of income you receive and how long it will last will depend on a range of factors, such as the amount initially invested, your age and investment performance. There is a risk that your pension income may reduce or cease if you draw your income too fast or if investment returns are poor.