Commonwealth Superannuation Corporation retirement income (CSCri) is an account-based retirement product.
CSCri is designed to complement your employee's existing CSS, PSS, or PSSap benefit by allowing them to keep some or all of their super invested, while also receiving regular retirement income payments.
It works like this:
- a member invests some or all of their Government super into a CSCri account
- CSCri pays a regular income stream to the member so they can meet their retirement needs and goals
- their remaining balance continues to work for them in the tax effective environment of superannuation
Employees approaching retirement will enjoy greater retirement flexibility with CSCri.
Retirement income stream options
CSCri offers members two types of retirement income streams:
- Standard retirement income stream; or
- Transition to retirement income stream
Standard retirement income stream
Standard retirement income stream allows members to invest all or some retirement savings in one or more of the four investment options.
With a standard retirement income stream:
- income stream payments are tax-free from age 60
- investment earnings are tax free
- members choose when you receive your income stream payments
- members can access to lump sums if and when you need them
The standard retirement income stream is available when members have met a condition of release, such as having reached your preservation age and have permanently retired from the workforce, have reached 65 years of age, or have changed employment on or after 65.
Transition to retirement income stream
Transition to retirement income stream enables members to receive a regular income stream from CSCri while continuing to have contributions paid into their current super account.
This gives them greater control over how and when they retire, or the option to “top up” their super benefit prior to permanently retiring from work.
There are three transition to retirement strategies supported by CSCri:
- Boost their final super benefit
If members continue to work full time after preservation age, they can salary sacrifice extra contributions into super savings and supplement their take-home income with retirement income payments. This grows their total super benefit without reducing their take-home income. It can also save on tax.
- Reduce their work hours not income
If members want to gradually reduce work hours and ease into retirement, they can use CSCri to supplement a reduced income after they move from full-time to part time employment. This means they can work less, but maintain their current lifestyle.
- Increase their take-home income
This strategy can increase member's income level before retirement. By using regular income from CSCri, they can supplement their current employment income, giving them more options for managing their financial assets.
Transition to retirement income is available when members have reached preservation age but are under 65 years of age and are still working.
For more information about CSCri's benefits and key features, see the CSCri website.