Super Toolbox
About pensions
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A pension allows you to receive your superannuation benefits as an income stream, as opposed to one lump sum payment.
Pensions are highly flexible. You can choose the frequency and size of the pension payments you wish to receive, above a government-prescribed minimum amount. (In the case of MTAA Super's Transition to Retirement Pension, a government-prescribed maximum also applies). All the investment earnings in your pension account are completely tax free, which helps your retirement savings grow even faster.
You can commute your pension (end it and take the remaining assets as a lump sum) or take a portion of your account balance as a lump sum (partial commutation) at any time- with the exception of a pension begun under the Transition to Retirement rules.
On your death your pension can revert to your dependant (subject to some government-prescribed restrictions) or be paid as a lump sum.
The money supporting your pension can be invested in your chosen investment option. Investment returns will be applied to your pension via crediting rates, after taking into account relevant fees and costs.