Superannuation Retirement Income Streams

Non-Commutable Account Based Income Stream

A non-commutable account based income stream (also referred to as a ‘transition to retirement pension’) is an account based income stream that you can commence once you have reached preservation age (currently age 55) and where you have not ceased employment.

Although it works in a similar way as a normal account based income stream (as previously outlined) three additional conditions apply:

  • you generally cannot make lump sum withdrawals;
  • earnings do not enjoy the tax-free status of pension phase but instead are taxed at 15%; and
  • your pension income cannot exceed 10% of the account balance each year.