These products are designed for retirees who generally have ceased employment and are looking to receive an income stream during their retirement. They offer you the flexibility to determine when you receive pension payments and to set a level of income appropriate for your desired standard of living, however the government does impose minimum and maximum levels of income.
No lump sum tax is payable when superannuation or rollover money is placed in the account, similarly, investment earnings on the balance of the pension account are not taxed either.
Investment options available under an allocated pension range from low risk capital secure funds, to higher risk market linked funds. You also maintain access to your capital.