A little about account-based pensions (October 2026)

As retirement approaches, one of the biggest decisions many people face is how to turn their super savings into an income. An account-based pension is one option. Rather than taking your super as a lump sum, an account-based pension allows you to transfer some or all of your super into a retirement income account and receive regular payments over time.

Many retirees are attracted to account-based pensions because they offer flexibility. You can generally choose how often you receive payments and how much income you draw, subject to minimum annual payment requirements. Depending on your fund’s rules, you may also be able to withdraw lump sums when needed.

However, account-based pensions aren’t risk-free. Your money stays invested, which means your account’s value can rise or fall depending on investment performance and how much you withdraw. The decisions you make about investments and income levels can affect how long your retirement savings last.

Account-based pensions can also offer favourable tax treatment in retirement, although the tax rules can be complex and will depend on your personal circumstances. An account-based pension is just one of several ways to access your super in retirement. If you’re starting to think about retirement income options, it’s worth understanding how the different approaches work before making decisions.