Transition to retirement
Key features of TRIS income streams
Section: 13.2
13.2 Key features of transition to retirement (TRIS) income streams
A transition to retirement income stream (TRIS):
- Must be commenced using superannuation monies
- Can commence for a person who is at least preservation age (age 55 for those born before 1 July 1960, rising in increments to age 60 for those born from 1 July 1964)
- Can commence using preserved, restricted non-preserved and unrestricted non-preserved benefits. A pensioner can choose to take preserved and non-preserved components in any proportion they wish. If a TRIS income stream commences from preserved, restricted non-preserved and unrestricted non-preserved components, the TRIS income stream is deemed to have been taken from the unrestricted non-preserved components first, then the restricted non-preserved component and finally the preserved amount
- Only permits lump sum withdrawals from any unrestricted non-preserved component of the income stream. Lump sums can be taken from other components when a subsequent condition of release is met
- Requires a minimum percentage drawdown of 4% of the account balance (as at 30 June 2023) for the 2023/24 financial year. The federal government announced that the minimum pension drawdown rates would be temporarily halved for the 2019/20, 2020/21, 2021/22 and 2022/23 financial years, due to market volatility. This rule change assisted retirees who do not wish to sell their investment assets when the value of those assets may be reduced
- Caps the maximum annual payment to 10% of the account balance per annum at commencement, or 10% of the account balance each 1 July until the earlier of:
- the pensioner reaching age 65 or
- meeting another condition of release, whichever occurs first
- Does not count towards a member's transfer balance cap of $1.9 million from 1 July 2023*
This technical resource is intended for the use of financial advisers only. It is current as at the date of publication but may be subject to change. This publication has been prepared without taking into account a potential investor's objectives, financial situation, needs or objectives. Before making a recommendation based on this material, you should consider its appropriateness based on the client's objectives, financial situation and needs. Rainmaker Group is not a registered tax agent under the Tax Agent Services Act 2009. Your client should be referred to a registered tax agent before relying on information published herein that may impact their tax obligations, liabilities or entitlements.
Last modified: Wednesday, June 28, 2023