Timing of setting up an income stream

Retiring soon then looking to convert your superannuation to an income stream and meet the eligibility criteria? It sounds simple enough, however remember that setting up an income stream means dealing with a product provider (i.e. your super fund) with all different options and ways of doing things.

What I mean by that is they all have different administrative requirements to set one up. Some let you complete the application with no paper (just commencing one digitally online), others may need a wet signature, then for it to be scanned and sent in via email. Some even still require you to physically post the application in.

Then there are the identification requirements, you may be asked to send in certified copies of your identification to prove who you are again. Getting the money out may also require providing the super fund with further identification like bank account statements or even a recent council rate notice!

Now once you have everything ready to go, there still may be hiccups along the way, there could be errors in the documents you completed/provided – or things can always get missed and delays can happen when the superannuation fund tries to process your application. I always get clients to start the process sooner rather than later and keep in mind that delays do happen with super funds and things can get missed. It is always important to try to make sure if you are retiring that you have some backup savings or income to fall back on whilst things are getting setup. This is especially important if you are waiting on the Centrelink Age Pension also as applications can take some time to be processed and for you to start receiving an income.