Questions about retirement investments? Let us help
Find answers here about your options for retirement investments (pensions) with Perpetual. Be sure to go to Forms & Transactions FAQs or Forms for specific documents to take action on your account.
Commonly asked questions about Retirement
- Q. I’m looking for income during retirement. What are my options with Perpetual?
- Q. I have already retired. Can I still open a pension fund?
- Q. When are pension payments made?
- Q. What are the main features of a Term Allocated Pension?
- Q. What type of retiree would want to buy a TAP?
- Q. What are the main features of an Allocated Pension?
- Q. What type of retiree would want to buy an AP?
- Q. How do I access a TAP or AP?
- Q. How does the TAP plan differ from the AP plan?
- Q. I’m looking for income during retirement. What are my options with Perpetual?
- A. Allocated Pensions and Term Allocated Pensions are two types of income streams Perpetual offers during retirement.
- Q. I have already retired. Can I still open a pension fund?
- A. You are eligible for our Perpetual WealthFocus Allocated Pension and Perpetual WealthFocus Term Allocated Pension after you reach your preservation age and are no longer working. You can contribute with an Eligible Termination Payment (ETP) which is ‘unrestricted non-preserved’. Depending on your objectives, you can invest in one or a number of Investment Options. For more information, see these products as well as our Select Pension Plan description on our Retirement Fund Information page.
- Q. When are pension payments made?
- A. Investors in Perpetual WealthFocus Allocated Pension Plan can choose to have their pension paid monthly, quarterly or yearly. Pension payments are made on the 6th, 13th, 20th or 27th of the month or the previous business day if that falls on a weekend or public holiday.
Investors in Perpetual’s Select Allocated Pension Plan and Select Term Allocated Pension plan can choose to have their pension paid monthly, quarterly or yearly. Pension payments are made on the 25th of the month or the previous business day if that falls on a weekend or public holiday. - Q. What are the main features of a Term Allocated Pension?
- A. A Term Allocated Pension (TAP):
- accepts Eligible Termination Payment (ETP) money only
- has a fixed term based on government rules
- account balance is 50% exempt from the social security assets test
- provides potential access to the pension reasonable benefit limit, and
- has limitations on withdrawals (also known as commutations)
As the TAP Plan forms part of the Pension Plan, it will have exactly the same investment options, pricing (contribution fees, ongoing issuer fees and commissions) and product features as the Allocated Pension Plan. The main differences are the pension term (number of years the pension lasts for), the way the pension is calculated, the restrictions on access to lump sums, and the social security and tax benefits offered to investors.
- Q. What type of retiree would want to buy a TAP?
- A. A Term Allocated Pension is worth considering for retirees who:
- want to be able to access the age pension and/or higher pension RBL
- want access to concessional tax treatment
- want to access the Centrelink 50% assets test exemption
- do not need access to their investment other then regular pension payments
- Q. What are the main features of an Allocated Pension?
- A. An Allocated Pension (AP):
- provides annual payment that you can claim, subject to minimum and maximum limits prescribed by government
- may not provide a pension for the rest of your life
- gives you the choice to invest in low to high risk investments
- Q. What type of retiree would want to buy an AP?
- A. An Allocated Pension is worth considering for retirees who:
- want maximum flexibility to commute their lump sum when they wish
- want to be able to vary the amount they draw down each year
- want access to concessional tax treatment
- Q. How do I access a TAP or AP?
- A. Our Perpetual Select, WealthFocus and DIY Super products each have TAP and AP application forms available with their Product Disclosure Statements (PDS) or supplementary PDS. See our selection on the Retirement Funds Information page.
- Q. How does the TAP plan differ from the AP plan?
- A. This table shows a high level comparison of features.
TAP Plan AP Plan Social security assets test exemption 50% exemption No exemption Potential access to the pension RBL Yes No Withdrawal of benefits in limited circumstances Only in limited circumstances
Unlimited access Term of the pension You choose within a set of ranges set by the government. No term is set. Pension finishes when balance is exhausted. Pension payments Your annual amount is set each year based on a formula set by the government. You are able to choose between a minimum and maximum payment amount set by the government.
