A retirement income account allows Australians to convert their superannuation savings into a regular income stream during retirement.
Your balance remains invested, while scheduled payments are made to support your lifestyle.
This structure is commonly referred to as ‘pension phase’ and is designed to help manage income, risk and longevity in retirement.
From super accumulation to retirement income
During your working life, superannuation is primarily focused on accumulation, growing your balance over time.
Once you retire, the focus generally shifts to:
- Generating reliable income
- Preserving capital where possible
- Supporting long-term sustainability
- A retirement income account is structured to support all three objectives.
A Stockspot retirement income account simplifies that transition with automated payments, so you can spend more time enjoying the important things in life.
How does the pension phase work?
When your super moves into pension phase:
- Your super balance is invested in a diversified portfolio
- You receive regular income payments
- Your remaining balance continues to earn investment returns
These processes operate together, allowing income to be paid while the balance remains invested. Stockspot will continue to manage your portfolio and income processing is all handled automatically by Stockspot, with everything visible and trackable on your app or dashboard.
Tax treatment of retirement income accounts
Under current Australian superannuation rules, retirement income accounts receive concessional tax treatment.
For most Australians aged 60 and over:
- Investment earnings are generally tax-free
- Withdrawals are generally tax-free
Tax outcomes depend on individual circumstances and legislation may change over time.
Minimum drawdown rules explained
The Australian Taxation Office (ATO) sets minimum annual withdrawal rates for pension accounts based on age.
In general:
- Younger retirees have lower minimum withdrawal rates
- Minimum rates increase progressively as you age
These rules are designed to ensure pension accounts provide income throughout retirement. When you have an account with Stockspot we monitor income payments to ensure they remain within the required thresholds.
Choosing how much income to withdraw in retirement
You can choose to withdraw more than the minimum pension amount if needed.
However, higher withdrawals may:
- Reduce the long-term sustainability of your retirement savings
- Increase the risk of drawing down your balance earlier
Income levels are an important consideration when balancing current lifestyle needs with the length of retirement.
Managing longevity and investment risk in retirement
Many Australians may spend 20 to 30 years or more in retirement.
Diversified portfolios are used to help:
- Manage market volatility
- Address inflation risk
- Support income needs over time
Automatic rebalancing helps keep the investment mix aligned with its intended risk profile as markets change.
Visibility and control of your assets in retirement
Clear visibility can be important when managing retirement income.
When you invest with Stockspot your online dashboard shows:
- Income payments
- Portfolio performance
- Current account balance
All information is available in one place, helping you stay informed without additional administration.
