RetireSmart provides members with a convenient mix of investments focused on growing your savings while providing you with a regular, sustainable income in retirement.

What is RetireSmart?

RetireSmart is an account-based pension that is focused on generating a consistent stream of income, making your account balance last as long as possible.

We use a “two-bucket” investment model to support RetireSmart members. Your account balance is separated into two distinct investment buckets:

  • Growth bucket – invested predominantly in growth assets such as shares, property, infrastructure and bonds that generate capital growth and income. The income is distributed to the Cash bucket to support your pension payments.
  • Cash bucket – invested wholly in Australian cash and term deposits with the aim of insulating your pension payments during market downturns. Regular pension payments are made from the Cash bucket.

Key features of RetireSmart


RetireSmart features a pre-mixed investment strategy designed to generate income and capital growth.

Pension income

You can nominate your annual income – subject to age-based minimums. The maximum annual pension payable is 20% of your account balance. Income is withdrawn from your Cash bucket.


Need to make a withdrawal? RetireSmart allows you to do it at any time.

Payment frequency

You can choose to receive your payments weekly, fortnightly, monthly, quarterly, twice-yearly or annually.


Minimum investment

$100,000 is required as the minimum initial investment. If your investment falls below $5000, your full account balance will be paid out in the next pension run.

Maximum investment

You can invest up to $1.6 million in an account-based pension product, like RetireSmart, the maximum allowed amount across all of your retirement accounts (not including transition to retirement). This is known as the Transfer Balance Cap, an industry-wide rule enacted by the government from 1 July 2017. Our financial advice team can provide strategic advice on how to manage your accounts if your balance is near or over that amount.

How much money is kept in each bucket?

When you start your RetireSmart pension, your Cash bucket will contain twice your nominated annual pension income. The remaining balance will be invested in your Growth bucket. Your Cash bucket will be automatically topped up from your Growth bucket. This happens both quarterly and annually to provide extra income certainty and lock in capital gains for a rainy day.

If your Cash bucket should grow to three times your annual pension income, the excess money will be transferred back into the Growth bucket.

The risk of seeing a negative return because of the sale of growth assets during a market downturn is minimised because the underlying assets (e.g. shares) remain in the Growth bucket and are not normally sold to allow pension payments to be made.

Do I need to make investment choices?

No, all RetireSmart investments are made up of pre-mixed assets. If you would prefer to select investments for your retirement funds, our RetireChoice account-based pension may be a more suitable option for your needs.