Islamic Pension
Plan for your retirement with confidence while staying true to your Islamic values. Meezan Wealth helps you explore Shariah-compliant pension solutions that can turn your eligible superannuation savings into retirement income, helping you plan for the next chapter of life in a way that reflects your faith, priorities and financial goals.
Explore Two Types of Pension
- Account-Based Pension – Turn eligible superannuation savings into regular retirement income. You can generally choose your payment amount and frequency within applicable rules, while your remaining balance stays invested and may rise or fall with investment performance.
- Transition to Retirement (TTR) Pension – If you’re eligible and still working, a Transition to Retirement (TTR) income stream may let you access some of your super to supplement your salary or support a gradual move towards retirement. Government rules limit how much you can withdraw. With Meezan Wealth, you can explore retirement planning options through a Shariah-conscious approach that reflects your faith and financial goals. Speak with our team to understand the options available to you and whether they suit your circumstances.
An Account based Pension
An account-based pension lets you turn eligible superannuation savings into a regular income stream in retirement. Your remaining balance stays invested, giving you flexibility in how you receive your payments while your investment balance may rise or fall over time.
How an account-based pension works
Once you meet the eligibility requirements, you can generally:
- Choose how much of your eligible superannuation savings to transfer into a pension account, subject to applicable limits.
- Choose how much income you receive and how often you are paid, while meeting the minimum annual withdrawal requirements.
- Keep your remaining balance invested, recognising that investment performance, fees and withdrawals can affect how long your savings last.
With Meezan Wealth, explore a Shariah-conscious approach to retirement planning that reflects your Islamic values and financial goals.
A Transition to Retirement Pension
Make the transition towards retirement more flexible while staying focused on your financial goals.
A Transition to Retirement (TTR) income stream may allow eligible Australians who are still working to access part of their superannuation without retiring completely.
How a Transition to Retirement Pension works
A TTR strategy may help you:
- Supplement your income if you choose to reduce your working hours.
- Access some of your super while continuing to work.
- Explore ways to manage your income as you prepare for retirement.
You generally need to be at least 60 and meet the applicable eligibility requirements. Government rules limit the amount you can withdraw each financial year, and accessing your super earlier may reduce the savings available for your later retirement.
With Meezan Wealth, explore retirement planning through a Shariah-conscious approach that reflects your Islamic values and financial goals. Speak with our team to understand your options and whether a TTR strategy may suit your circumstances.
We’re Here to Help!
Planning for retirement while staying true to your Islamic values doesn’t have to feel complicated. Meezan Wealth is here to help you explore Shariah-compliant retirement planning options and take the next step towards a financial future that reflects your faith and goals.
Tax on Pension Payments
The tax treatment of your pension payments depends on your age and the type of income stream you receive. Many people aged 60 and over receive superannuation income stream payments tax-free, subject to applicable rules. Consider seeking professional advice to understand how tax may apply to your circumstances.
Frequency of payments
Choose a payment schedule that suits your retirement budget. Account-based pensions may offer monthly, quarterly, half-yearly or annual payments, depending on your provider’s available options. Regular payments continue while your pension account has sufficient funds, subject to applicable rules.
Benefits and Features of a Retirement Income Account
- Tax-effective retirement income — Eligible pension payments may be tax-free depending on your age and circumstances.
- Flexible payment options — Choose your payment amount and frequency, subject to applicable rules.
- Access to additional withdrawals — Make lump-sum withdrawals where permitted, while considering the impact on your future retirement income.
- Shariah-conscious investing — Explore investment options designed to align with Islamic financial principles, subject to Meezan Wealth’s approved product details.
- Potential tax advantages on investment earnings — Eligible retirement-phase pension accounts may receive concessional tax treatment.
- Greater control over retirement planning — Manage your savings and income according to your needs, investment performance and financial goals.
How a TTR strategy works
1
Keep working while your employer continues making eligible super contributions into your Super Account.
2
If eligible, transfer some of your super into a TTR Income Account. Keep your Super Account open for ongoing contributions and any insurance premiums.
3
Receive TTR payments into your bank account to supplement your income while you continue working.
Super Account
Transfer some of your super to a TTR Income Account, subject to eligibility and provider requirements.
TTR Income Account
Receive regular income payments of between 4% and 10% of your TTR account balance each financial year.
Your Bank Account
Frequently Asked Questions About Insurance Through Super
What is an Islamic pension?
An Islamic pension is a retirement income arrangement designed to align with Islamic financial principles. The specific investment approach and available features depend on the pension provider and its approved product arrangements.
How does an account-based pension work?
An account-based pension allows eligible people to use their superannuation savings to receive regular retirement income. You can generally choose your payment frequency and how much income you draw, subject to minimum withdrawal requirements and applicable limits.
What is the difference between a TTR pension and an account-based pension?
A Transition to Retirement (TTR) income stream is designed for eligible people who want to access some super while continuing to work. A standard account-based pension is generally used to provide retirement income after the relevant release conditions are met. The rules governing payments and access to lump sums differ.
Who can start an account-based pension?
Eligibility depends on your age, circumstances and whether you meet the relevant superannuation condition of release. Reaching preservation age alone does not automatically mean you can start an account-based pension.
Can I use an Islamic pension if I am still working?
Depending on your circumstances, you may be eligible for a Transition to Retirement (TTR) income stream while continuing to work. TTR arrangements have specific eligibility and withdrawal rules. A standard account-based pension generally requires you to meet a relevant condition of release.
What is a Transition to Retirement (TTR) pension?
A TTR income stream may allow eligible people aged 60 or over who are still working to access some of their super. It can help supplement income if you reduce your working hours or support a retirement-planning strategy while you continue working.
Can I stop working after starting a TTR income stream?
You may later retire or meet another condition of release, depending on your circumstances. When you become eligible to access your super more freely, the treatment of your TTR income stream may change. Seek guidance before making changes to your employment or pension arrangements.
Can I transfer all my superannuation savings into an account-based pension?
You may be able to transfer some or all of your eligible superannuation savings into an account-based pension, subject to eligibility requirements and the applicable transfer balance cap. You should also consider whether you need to retain funds in an accumulation account for ongoing contributions or other needs.
Can I add more money to my account-based pension after it starts?
Generally, you cannot add new contributions directly to an existing account-based pension. If you are eligible to make further super contributions, you may need to contribute to a separate superannuation account and meet the relevant requirements before starting another pension.
How often can I receive pension payments?
Payment frequency depends on the pension product and provider. Account-based pensions may offer monthly, quarterly, half-yearly or annual payments. Check the available options and minimum withdrawal requirements before choosing a payment schedule.
Can I change my pension payment amount after my account starts?
Account-based pensions generally allow you to adjust your regular payments, subject to minimum withdrawal requirements and your provider’s rules. Check the available options with Meezan Wealth before opening an account.
Can I make additional withdrawals from my pension account?
Depending on the product, you may be able to make additional lump-sum withdrawals from an account-based pension. Withdrawals reduce your remaining balance and may affect how long your retirement savings last. Different restrictions apply to TTR income streams.
Will my account-based pension last for the rest of my life?
An account-based pension does not guarantee income for life. How long your savings last depends on your starting balance, withdrawals, investment performance and fees. Consider your long-term income needs when deciding how much to withdraw.
Are pension payments tax-free?
Tax treatment depends on your age, the type of pension and your circumstances. Many people aged 60 or over receive tax-free payments from taxed superannuation income streams, but different rules can apply, including to investment earnings from a TTR income stream.
Can I receive the Australian Age Pension as well as income from my super?
You may be eligible for the government Age Pension in addition to income from super, depending on your age, residency status, income, assets and other eligibility requirements. Your super and pension arrangements may affect the government’s income and assets tests.
Are investment returns from an Islamic pension guaranteed?
No. Investment returns are not guaranteed unless a specific product expressly provides a guarantee under its terms. Investment values can rise or fall, and returns may be affected by market conditions, investment choices, fees and other factors.
How can I check whether pension investments follow Islamic principles?
Ask the provider for its approved Shariah governance information, investment screening methodology and details of how compliance is monitored. Review the relevant product documents to understand how the investment approach is applied.
What fees should I consider before opening a pension account?
Fees may include administration fees, investment management costs, transaction costs and other applicable charges. Review the product’s current fee schedule and disclosure documents so you understand the costs before making a decision.
What happens to my pension balance if I pass away?
Any remaining balance may be payable to eligible beneficiaries or your estate, depending on the product rules, beneficiary nominations and applicable superannuation law. Ask Meezan Wealth how death benefits and beneficiary nominations work under its specific arrangements.
What documents should I review before choosing a pension?
Review the product disclosure statement, fees and costs information, investment options, risk information, eligibility requirements, withdrawal rules and relevant Shariah governance documents. These help you understand the product’s features, limitations and risks before applying.
How can I discuss my retirement options with Meezan Wealth?
Book an appointment with Meezan Wealth to discuss your retirement goals, eligibility and the options available through its approved services. You can ask about Shariah governance, fees, investment risks, payment arrangements and the documents you should review before deciding.
How do I get started with Meezan Wealth?
Use the Book an Appointment button to discuss your retirement-planning needs with the Meezan Wealth team. If you are ready to proceed, ask the team about eligibility, product documents, fees, investment options and the application process.
Ready to Plan Your Retirement with Confidence?
Take the next step towards a retirement plan that reflects your Islamic values and financial goals. Meezan Wealth can help you explore Shariah-conscious pension options, understand your eligibility and learn about the next steps towards retirement.
