Get a regular income in retirement
If you’ve decided it’s time to leave work behind and retire full-time, an allocated pension account could be right for you.
Use your super to open a Mercer SmartRetirement Income allocated pension account and receive a regular income. Meanwhile, your balance remains invested to keep growing over time, so you can move into retirement with confidence.
Why start an allocated pension?
Payment flexibility
You decide how much and how often you get paid, directly into your bank account.
Tax free
If you’re over 60, income payments and investment earnings are tax free.
Keep growing your savings
Choose how your money is invested and take advantage of potential returns in a tax effective environment.
Smart Bundle, your hassle-free start to retirement
Set up your Mercer SmartRetirement Income account the easy way, with preselected pension payment and investment strategies that are fine-tuned as you age. Smart Bundle is a quick and easy solution for members who want to know their retirement is in good hands. You can apply online using our digital form.
Flexible income payments
Once you set up your account, you can choose how often you receive payments – annually, half-yearly, quarterly, monthly or twice per month – whatever works for you. You can also choose how much you get paid, though the government requires you to withdraw a minimum amount each year. This is based on your account balance and age at 1 July each year.
When can I access my super?
If you’ve already reached the current preservation age of 60 you can start accessing your super now.
If you’re 65 or over, or already retired from the workforce, you can start an allocated pension account and access your super.
Am I eligible for the Age Pension?
An allocated pension and the government Age Pension can be used together to provide an income in retirement. To receive the Age Pension, you must be 67 years old and an Australian resident (generally for at least 10 years). Income and assets tests also apply, and your allocated pension counts toward both tests.
Chat to a financial adviser or visit the MyGov website for more information.
Allocated pension in a nutshell
- How do I open an allocated pension account?
You can transfer some or all of your super to a Mercer SmartRetirement Income allocated pension account.
- What is the minimum amount needed to open a pension account?
You need to invest at least $10,000 to start a Mercer SmartRetirement Income allocated pension account. You cannot contribute more funds to the account once it is open.
- Is there a maximum amount I can invest in an allocated pension?
A transfer balance cap applies to the amount you can invest in pension accounts. Any amount over the cap will attract taxes and must be withdrawn from your account.
- Where can I find the Product Disclosure Documents?
You can find the PDS on our Disclosure Documents page under SmartRetirement Income.
- How often will I receive pension payments?
You can choose to receive your payments annually, half-yearly, quarterly, monthly or twice per month.
- How does tax apply to my income and investment earnings?
Your investment earnings are tax free and and you don't pay any tax on pension payments from age 60.
- Will there be any impact on the Age Pension?
Your allocated pension counts toward the income and assets tests. This may affect how much you receive from the Age Pension, or if you’re even eligible.
The right advice can help you make the right choice
No matter where you’re at in life, the right advice at the right time can help you take charge of your super and retire with confidence. With Mercer Super, accessible advice is always within easy reach. Request a callback.
Ready to start your retirement journey?
Read the Product Disclosure Statement (PDS) to make sure the product is right for you.
If you don’t have a Mercer Super account, please download and complete the application form.
Not for you?
Are you under 60 and want to cut back your work hours?
A Transition to Retirement account might be a better fit.
Are you still working and wondering how to grow your super balance?
There are still opportunities for you to grow your balance and get the most out of your super.
Need more help? We’ve got you covered.
Have questions about Mercer Super or need more information about becoming a member? We’d love to hear from you.
Member Online support
Log in to your account for more information or to submit an online enquiry.
Contact our helpline
Visit the member support page or call 1800 682 525, Monday to Friday, 8am-7pm (AEST/ AEDT).
Disclaimer: Issued by Mercer Superannuation (Australia) Limited ABN 79 004 717 533, Australian Financial Services Licence # 235906, the trustee of the Mercer Super Trust ABN 19 905 422 981 ('Mercer Super'). Any advice provided is of a general nature and does not take into account your objectives, financial situation or needs. Before acting on any advice, please consider the Product Disclosure Statement available at mercersuper.com.au. The product Target Market Determination can be found at mercersuper.com.au/tmd.
The material contained in this document is based on information received in good faith from sources within the market and on our understanding of legislation which we believe to be accurate. Neither Mercer nor any of its related parties accepts any responsibility for any inaccuracy.
This information is based on the interpretation of current tax laws which may change. You should obtain your own tax advice.
Mercer financial advisers are authorised representatives of Mercer Financial Advice (Australia) Pty Ltd ABN 76 153 168 293, Australian Financial Services Licence #411766. The value of an investment in the Mercer Super Trust may rise and fall from time to time.
The investment performance, earnings or return of capital invested are not guaranteed. Past performance is not a reliable indicator of future performance. 'MERCER’ is an Australian registered trademark of Mercer (Australia) Pty Ltd ABN 32 005 315 917.
IMPORTANT: Please note that any information in this material regarding legal, accounting or tax outcomes does not constitute legal advice or an accounting or tax opinion and prior to relying and acting on this information it is important that you seek independent advice from a qualified lawyer or accountant regarding this information.