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.
A steady pay cheque even after you stop working
What you need to open a Super Income Stream (SIS) account
Have a minimum of $10,000 to invest.
Reach your preservation age.
You can set up a SIS using funds from your existing super account with Cbus or from any other super fund.
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 $1.6 million for the 2020/21 financial year. This is called your lifetime transfer balance cap.
This is the total balance of all your 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 Tax penalties may apply if you exceed the cap, and any amount over the cap will need to be withdrawn or transferred to a super account.
This limit doesn’t apply to the Transition to Retirement option.
There are two types of SIS accounts
|If you're still working||If you've stopped working|
|Between preservation age and age 64||Transition to Retirement account||Fully Retired account|
|Age 65+ years||Fully Retired account|
Your preservation age
|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|
How a SIS works
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 – we’ll even help you with the paperwork.
Member access to a Certified 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.
For more comprehensive personal financial advice, Cbus Advice Services can refer you to an accredited Certified Financial Planner (CFP).
Your first meeting with a CFP is at no cost. The CFP offers 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.
All CFPs meet strict professional qualification and service criteria set by Cbus and the Financial Planning Association (FPA) of Australia.
Call us on 1300 361 784 to get started.
Come along to a retirement seminar
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
Benefits of opening a SIS
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 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, option 1, and follow the prompts to request a balance quote.
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 the transfer balance cap of $1.6 million.
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^Estimated total retirement income in year one of $28,530, comprising of $3,978 from the Cbus Super Income Stream account and $24,552 from the Government Age Pension. According to ASFA (a super industry expert), a single person needs around $28,179 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 3.5% pa, to cater for inflation and increase in living standards. The income from the Cbus Super Income Stream is projected to last until age 90. 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 5.25% p.a. after fees and taxes. Administration fee of $104, with 0.19% asset-based administration fee. Calculated using the Cbus Retirement Income Estimate Calculator as at 07/04/2021. 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.