In retirement · Caloundra & the Sunshine Coast

Transition to retirement and retirement income in Caloundra and on the Sunshine Coast

Transition to retirement lets you draw part of your super as income from preservation age while you keep working. When you retire, an account-based pension can pay you an income from super. Simon helps you choose how much to draw and how it fits with the Age Pension. We work with people in Caloundra, Mooloolaba and across the Sunshine Coast.

Book a 30-minute Fit Check with Simon

Simon Pederson, M.Fin, B.Bus (FP), Founder and Lead Retirement Planner, over 15 years helping people plan for retirement

Friends chatting over coffee on a beachfront deck

How do you move from a salary to retirement income?

Stopping work changes where your income comes from. Some people step down gradually with a transition to retirement income stream, while still working part-time. Others retire fully and start an account-based pension. Either way, Simon helps you work out a regular income from super, how much to keep in cash, and how it fits with the Age Pension and tax.

Simon lives in Caloundra. We work with people in Caloundra, Mooloolaba and across the Sunshine Coast.

“He is able to present complicated elements of financial planning or their aspects in a clear, succinct manner and in an understandable way.”
Denis, Jan 2026Selected reviews. Individual experiences vary.

How does transition to retirement work?

Once you reach preservation age, you may be able to start a transition to retirement income stream while you keep working. [1]

Payments: under 65, you must draw between 4% and 10% of the balance each year until you meet a condition of release such as retiring. [1]
Tax on earnings: earnings on the supporting assets are taxed at 15% until the income stream moves into the retirement phase. [2]
Retirement phase: it moves automatically at 65, or when you tell your fund you’ve retired. [1]

Some people use it to cut back their hours, others to top up super contributions. Whether it suits you depends on your income, tax and plans, so Simon models the options with you.

What is an account-based pension, and how much must you draw?

When you retire, you can move super into an account-based pension. Your money stays invested and you choose regular payments into your bank account. A minimum must be paid each year, based on your age: for 2023–24 onwards, 4% under 65, 5% at 65 to 74, 6% at 75 to 79, 7% at 80 to 84, 9% at 85 to 89, 11% at 90 to 94 and 14% at 95 or over. [3] The balance can rise and fall with markets.

Payments from a taxed fund to people aged 60 or over are generally tax-free, and earnings in the retirement phase are generally tax-free too. Limits and conditions apply, including the general transfer balance cap of $2.1 million for 2026–27. [3][4]

Do you have a defined benefit super fund?

Most super accounts have a balance that rises and falls with contributions and investment returns. A defined benefit account works differently. Your fund uses a formula to work out what you’ll get when you retire, often based on your salary before retirement and how long you worked for your employer. Most of these accounts were set up by an employer, and many no longer take new members. [7]

Pension or lump sum

At retirement, some funds let you choose an income stream, a lump sum or both. Simon helps you understand your options before you decide.

Rollover choices

If you roll a lump sum into an account-based pension or another super fund, it’s worth knowing first what you may give up, as you generally can’t rejoin. [7]

Markets for the first time

For many defined benefit members, a rollover is their first time with money invested in markets, where balances move up and down. Simon helps you understand and prepare for that.

Simon helps people with defined benefit accounts work through these decisions, alongside your fund’s own information. Your family is welcome to join the conversation. Talk to Simon about your defined benefit super

How do you keep drawing an income when markets fall?

Some retirees keep a buffer, for example one to two years of planned spending, in cash and defensive assets. When markets fall, you can draw on that buffer, so you’re less likely to need to sell growth assets at a low point. Money held in cash may earn less over time. Read What happens to super in a market crash? and see our investment management page.

How does your income fit with the Age Pension?

Age Pension age is 67. [5] Once you reach it, your super counts in the assets test, and in the income test under the deeming rules. If your fund is already paying you a super pension, such as a transition to retirement or account-based pension, it counts before then too. [6] Simon looks at your pension payments, the Age Pension and tax together, and helps with the paperwork for your super fund and Services Australia.

More on our superannuation advice and tax in retirement pages.

What do you want retirement to look like?

Income is only part of it. Simon also talks through how you’d like to spend your time, who you want to be near and where you want to live, as part of our Path to Prosperity approach.

It starts with a 30-minute Fit Check. It’s general information, not personal advice. See Pricing, Our engagement process and retirement planning for every life stage.

Common questions about retirement income

What is a transition to retirement income stream?

A transition to retirement income stream lets you draw part of your super as regular payments once you reach preservation age, while you keep working. Under 65, you must draw between 4% and 10% of the balance each year until you meet a condition of release such as retiring.

Is a transition to retirement pension tax-free?

Not entirely. Earnings on the assets supporting a transition to retirement income stream are taxed at 15% until it moves into the retirement phase, which happens automatically at 65, or when you tell your fund you’ve retired. Payments from a taxed fund to people aged 60 or over are generally tax-free, depending on your circumstances.

What is an account-based pension?

An account-based pension is a retirement income stream paid from your super. Your money stays invested, you choose regular payments, and a minimum amount must be paid each year, based on your age. The balance can rise and fall with markets.

How much must I draw from my pension each year?

The minimum depends on your age. For 2023–24 onwards, it is 4% of the balance under 65, 5% at 65 to 74, 6% at 75 to 79, and higher at older ages. You can draw more than the minimum from an account-based pension.

Will I need to invest in markets if I leave a defined benefit fund?

It depends on what you choose. A defined benefit pension is worked out by your fund’s formula and doesn’t usually depend on an account balance or investment returns. If you roll your benefit into an account-based pension or another super fund, your balance will generally rise and fall with markets. For many people that is a new experience, so Simon helps you understand how investing works and what to check with your fund before you decide.

Want to talk through your retirement income?

Start with a 30-minute Fit Check with Simon, Founder and Lead Retirement Planner, by phone or video call.