Preparing for retirement

You have a number of different options upon ceasing employment. Depending on your age, you can:

  • roll all or some of your superannuation into a pension product
  • take some or all of your superannuation as a lump sum cash payment
  • rollover some or all of your superannuation to a complying superannuation fund
  • or a combination of the above.

We strongly suggest that you seek financial planning advice from a qualified professional in relation to your specific circumstances.

NTGPASS annuity bonus

An annuity is a private pension from an insurance company or similar institution. To be eligible, an approved annuity must be a lifetime annuity or for a minimum term of 10 years.

If you are retiring from the workforce and intend using your NTGPASS benefit to purchase an approved annuity, you may be eligible for an additional payment to offset the initial fees charged for the purchase of the annuity.

An approved annuity means:

  • an annuity purchased by a former member for his or her life or for a minimum term of 10 years
  • in relation to a death benefit - an annuity purchased by a dependant with monies from a deceased member’s estate solely attributable to the contributions made under the scheme by the deceased member and to the benefits received under the scheme by the estate
  • in relation to an invalidity retirement benefit - where a benefit is paid due to invalidity retirement and after it is paid to the former member, the former member purchases an approved annuity for his or her life or for a minimum term of 10 years.

The calculation of the annuity bonus is restricted to 5% of your compulsory employee contributions and the employer component of the benefit paid. Employee contributions exclude salary sacrifice, investment earnings, voluntary contributions and rollover amounts. The bonus will be paid as an eligible termination payment (ETP) and is subject to taxation.

To qualify for the bonus, the annuity must have been purchased within 90 days of you claiming your benefit from the scheme.

Opt out of NTGPASS and NTSSS

Active NTGPASS and NTSSS members can elect to opt out of the schemes once they reach preservation age (depending on date of birth). Eligible members who opt out will not need to resign from the NTPS to claim their NTGPASS and NTSSS superannuation benefits.

Members who choose to opt out:

  • will no longer be an active NTGPASS member and will no longer make compulsory NTGPASS member contributions of  2% to 6% of salary
  • will move from defined benefit superannuation arrangements to Choice of Fund (superannuation guarantee) arrangements - the employing agency will make superannuation guarantee contributions to their nominated superannuation fund each pay day
  • must select a superannuation fund to receive their superannuation guarantee contributions and any salary sacrifice contributions - this cannot be NTGPASS
  • must roll over their superannuation benefits to a superannuation fund that is not NTGPASS.

Opt out form - NTGPASS/NTSSS PDF (251.2 KB)

More information

Centrelink Financial Information Services
- speak to a financial information services officer: 132 300
- seminar bookings: 136 357

How long does your super need to last?
- longevity calculator

MoneySmart website administered by the Australian Securities and Investments Commission (ASIC) to help people make smart choices about their personal finances including superannuation.
Money Smart - how super works
Money Smart - retirement income

An easy to understand guide to superannuation
Includes fact sheets, calculators, interactive learning modules, detailed budgets on retirement lifestyle standards, and additional topics for you to consider before retiring.

Financial Planning Advice
Financial Planning Association’s site

Last updated: 15 November 2022

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