Retirement income

Account-based pensions

An account-based pension is an investment account which gives you the ability to choose from a range of investments and can vary from time to time with the level of income you wish to draw subject to the minimum annual withdrawal amounts set by the Government.

Account-based pensions are usually market linked. This means that the capital value is linked to the performance of the underlying investments, which can impact the level and duration of your savings and the income produced.

Account-based pension providers, which may include your super fund, charge management and/or administration fees for these products. This reduces your investment returns.

It's important to understand that an account-based pension is not an annuity, although they can be designed to produce fixed, regular payments like an annuity. The ability of an account-based pension to continue to pay these amounts will depend on the performance of the underlying investments.