Payment options

Did you know you can elect to have part or your entire Age Retirement Benefit pension paid out as a lump sum?

Payment Options

Lump-sum options

You can elect to have part of your entire Age Retirement Benefit pension paid out as a lump sum. When you retire or resign after your minimum retirement age, you can:

• convert up to 50% of your fortnightly pension to a lump sum, or 
• convert 100% of your fortnightly pension to a lump sum.

This election must be made  three months after the date of your retirement.

The lump sum option that you choose will have an effect on your partner in the event of your death. (See below.) Contact the ESSSuper Member Contact Centre for more information.

Effect of your choice of lump sum option on your partner

The lump sum option that you choose will have an effect on your partner’s reversionary entitlements in the event of your death

If you choose to make a partial conversion of your pension to a lump sum, there are two possible outcomes for the payment of your partner's pension if it ever becomes payable to your eligible partner (i.e. if you die before your eligible partner).

Under option A:

• If you elect to convert a portion of your pension to a lump sum, your eligible partner will be entitled to two-thirds of your original indexed pension that you would have received if you had not elected a lump sum. The lump sum would be less than under Option B

Under option B:

• You can elect to convert the same percentage of your pension to a higher lump sum, in which case your eligible partner will be entitled to two-thirds of the pension payable at the date of your death.
• If you convert 100% of your pension to a lump sum, you will also convert 100% of any future spouse pension.
• If you do not exercise your option to convert part or all of your pension to a lump sum within three months either side of the date of your retirement, you will have another opportunity to apply for a lump sum during the three months prior to your 65th birthday. This lump sum conversion would then become effective when you turn 65.  

The calculation includes an adjustment for the 'Taxed' status of the benefit.  

*If you elect to convert your entire pension, no further benefits will be payable to either yourself or your eligible partner.

What happens to your pension when you die?

In the event of your death, a benefit is payable to your eligible dependants, subject to special conditions. If you die without eligible dependants after commencing your pension, your estate may be entitled to a benefit.

• See what options are available if you are offered a retrenchment