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About allocated pensions

A regular income in retirement

There can be significant tax benefits to retirees who roll their superannuation savings into an allocated pension, including:

  • An allocated (or account-based) pension provides a regular income in your retirement
  • Income payments are funded from your superannuation lump sum and the investment earnings this generates
  • A fund manager maintains your pension account and the balance fluctuates in line with market movements, investment returns, fees, deductions for pension payments and other withdrawals.

If you’d like more information about your retirement options, you can make an appointment online for a complimentary, no-obligation consultation with a Commonwealth Financial Planner and start planning your retirement today.


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You can choose the amount of income you receive each year. However, there is a minimum set by the government that increases as you get older. Income payments continue until your account balance is used up or you withdraw your savings.

It’s generally far more tax-effective to convert your super into an allocated pension than it is to cash it out, as you receive a 15 per cent tax offset on any taxable income if you are aged between 55 and under 60 (conditions apply if you are under 55). Payments are tax free if you are over 60. Investment earnings are also tax free1.

 With an allocated pension, you can:

  • Choose from a wide choice of investments
  • Easily access your capital (except if commenced as a pre-retirement pension)
  • Make lump sum withdrawals whenever you want
  • Receive social security concessions under some circumstances
  • Pass on the balance of your account to your beneficiaries when you die

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Planning for retirement


Taking an active role in planning your retirement will not only make you feel more confident about your financial future, it will help boost your retirement savings, so you can live the retirement lifestyle you want.

From super, savings, to smart investments, we’ve got all the advice you need to plan a comfortable retirement. It's never too early to get started.

Learn more about planning for retirement

Important information 

1Correct as at 1/02/2011.

The information contained on this web page is of a factual nature only and is not intended to constitute financial product advice. It has been prepared by Commonwealth Financial Planning Limited without considering your individual objectives, financial situation or needs. You should consider its appropriateness in light of your circumstances and consider seeking professional advice relevant to your individual needs before making a decision based on this information. Commonwealth Financial Planners are Representatives or Authorised Representatives of Commonwealth Financial Planning Limited ABN 65 003 900 169, AFSL 231139, a wholly owned but non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124.