Which is the best allocated pension funds Australia?
James Craig
Published Mar 23, 2026
Best performing pension funds
| Fund | Investment option | 5 yr return (% per yr) |
|---|---|---|
| AustralianSuper | Choice Income Account – Stable | 5.2% |
| Cbus | Super Income Stream – Conservative | 5.0% |
| HESTA | AP – Conservative | 4.8% |
| Media Super | AP – Stable | 4.7% |
What is the difference between an account based pension and an allocated pension?
In essence, there is no difference between Allocated Pensions and Account Based Pensions. Many superannuation and income stream providers still refer to Account Based Pensions as Allocated Pensions.
Do you pay tax on an allocated pension?
The benefits of account based pensions Investment earnings are tax free2. No tax is payable on pension payments if you are 60 or over. You can access your money at any time and make additional lump sum withdrawals if you need to.
Do I pay tax on my allocated pension?
Generally, you will not pay tax on investment earnings. If you’re between your preservation age and 60, the taxable portion of your account-based pension payments will be taxed at your personal income tax rate less a 15% tax offset. From age 60 you will not pay tax on the pension payments you receive.
Is allocated pension taxable?
How does a term allocated pension work?
Term Allocated Pensions continue to provide an income until the assets are exhausted. You can nominate a term equal to your life expectancy or until age 100. Typically the longer the term you select, the lower the income payment you will receive.
Is an allocated pension the same as an account based pension?
How is an allocated pension taxed?
Tax on pension payments 60 or over: generally, no tax is payable on your pension payments or lump sum withdrawals. The taxable component is taxed at normal pay as you earn PAYG rates. However, you may be eligible for a 15% tax offset, which reduces the amount of tax you have to pay.
What are the top 10 performing super funds in Australia?
Best performing super funds
| Super fund | Investment option | 10 yr return (% per yr) |
|---|---|---|
| AustralianSuper | Balanced | 9.7% |
| Hostplus | Balanced | 9.7% |
| Cbus | Growth (Cbus MySuper) | 9.6% |
| UniSuper | Accum (1) – Balanced | 9.6% |
Can you withdraw from a term allocated pension?
An investment in the Term Allocated Pension provides you with a regular stream of pension payments over a fixed term. Except in very limited circumstances, you will not be able to access your investment by withdrawing lump sum amounts.
Is an allocated pension an asset?
The total value of an Allocated Pension is assessed under the Assets Test for Centrelink Age Pension purposes.
What does it mean to have an allocated pension?
An Allocated Pension income stream (also known as an account based pension) is an income stream commenced using your accumulated superannuation savings. An Allocated Pension is currently the most common form of income stream used by retirees. Here’s how it works.
Is the allocated pension still used in superannuation?
And whilst the allocated pension is an outdated term, it is still widely used. Many superannuation and income stream providers still refer to Account Based Pensions as Allocated Pensions.
When did account based pension replace allocated pension?
Once the funds are gone the pension payments will cease. However, in 2007 Account Based Pensions were introduced and these effectively replaced Allocated Pensions. So what is the difference between Allocated Pension and Account Based Pension? In essence, there is no difference between Allocated Pensions and Account Based Pensions.
How is the capital value of an allocated pension assessed?
The total capital value of an Allocated Pension is assessed under the ‘ assets test ‘ for Centrelink and aged care purposes. The assessment of the income (pension payments) received from an Allocated Pension will depend on when the pension it was commenced.
