What is the Retirement Income Optimiser?
The Retirement Income Optimiser is a feature of FirstChoice super that lets you support lifetime income strategies for your clients – without locking them into decisions while they're still building their super.
It works in the background of a client’s FirstChoice super, with no change to how they invest or manage their account. It keeps future retirement options open and, when used in combination with a CFS lifetime pension (in development, expected 2027), it supports a potentially more favourable Purchase Amount calculation which may improve Age Pension outcomes at retirement.
Your ambition. Backed by more.
Retirement Income Optimiser is one part of CFS' retirement solutions, which provide a complete retirement ecosystem of solutions, specialists and tools designed to help you build retirement capability and support better client outcomes.
Key benefits at a glance
A feature designed to benefit you, your practice and your client.
Start the retirement conversation earlier
Gives you a practical way to introduce future retirement income planning before clients need to make retirement decisions.
Preserve flexibility
Keeps clients in a familiar super environment while keeping future retirement options open.
Improve retirement outcomes
Supports a potentially more favourable Purchase Amount calculation if your client later chooses an eligible lifetime pension.
Demonstrate your value
Helps you connect accumulation planning, lifetime income strategy, Age Pension outcomes and future implementation.
Fit within existing workflows
Designed to sit inside your advice practice and the FirstChoice platform environment you already use.
Connect to the broader CFS ecosystem
Sits alongside CFS retirement solutions, specialists, tools and support, so you can build retirement capability without adding complexity.
A complementary retirement income strategy
Used with a CFS lifetime pension (in development) at retirement, the Retirement Income Optimiser will enable you to:
- introduce an income stream for life
- retain growth and liquidity when used with an account-based pension
- manage sequencing and longevity risk together, and
- tailor outcomes to each client’s personal and Centrelink circumstances.
How it works:
Client still in super
Once switched on, the Retirement Income Optimiser operates automatically within a client’s FirstChoice Wholesale Personal Super account unless they opt out. Clients in FirstChoice Employer Super are not automatically opted-in but can request to add this feature to their account. There is no additional cost to keep the feature active.
Account operates as normal
Investment options, fees, insurance (if applicable) and contribution strategies are unchanged.
No decisions required
No retirement income decisions are required and no capital is set aside or locked away while your client is still in super.
Purchase Amount tracked in the background
The Retirement Income Optimiser tracks contributions and withdrawals, indexed annually at the Centrelink upper deeming rate (currently 3.25%¹), to determine a future Purchase Amount.
Why starting early can matter
The longer the Retirement Income Optimiser is applied, the greater the potential difference between the Purchase Amount and the actual account balance (assuming investment earnings exceed the upper deeming rate). This may support a higher Age Pension entitlement if the client later allocates part of their super to an eligible lifetime income stream – with no change to how they save or invest today, and no commitment required until they meet a condition of release.
How it works: Client at retirement
When a client meets a condition of release, the Retirement Income Optimiser helps determine the Purchase Amount that Centrelink uses under the Age Pension assets test for a CFS lifetime pension – calculated separately from the client’s actual super balance.
Client meets a specified condition of release e.g. retirement
They can commence a CFS lifetime pension (when available).
Choose the allocation
Clients choose how much of their super balance to allocate to a lifetime pension, whilst also enjoying the benefits of an account-based pension purchased with their remaining super balance.
Centrelink assesses the Purchase Amount
The Purchase Amount is reduced by any commutations including to purchase an account based pension. 60% of the Purchase Amount is assessable until age 85, then 30% – which may improve Age Pension outcomes depending on the client’s circumstances².
Capital access schedule applies
The lifetime pension is subject to a capital access schedule that limits the amount available through voluntary withdrawals or on death over time, this is required to ensure it qualifies for concessional Centrelink treatment.
Eligibility and opting in
FirstChoice Wholesale Personal Super
Automatically switched on for eligible members, with the ability to opt out at any time. No additional cost to keep the Retirement Income Optimiser active.
FirstChoice Employer Super
Members actively opt in. Opting in moves the account from ‘MySuper’ to ‘Choice’, but fees, services, insurance and investment options stay the same.
Switching off or on
A CFS lifetime pension is still in development (expected 2027). If a client meets a condition of release before it is available, the Retirement Income Optimiser is switched off without affecting their super account.
Lifetime pension dependency
A CFS lifetime pension is still in development (expected 2027). If a client meets a condition of release before it is available, the Retirement Income Optimiser is switched off without affecting their super account.
Eligibility requirements
Eligible members must be aged 17 or over, under age 58, and not have met a specified condition of release. Eligibility is assessed under the Retirement Income Optimiser rules and may change over time.
How it could affect Age Pension outcomes at retirement
A simplified illustration of how the Retirement Income Optimiser could support a client’s retirement income and Age Pension outcome.
Client
Harry, age 67, with $200,000 in FirstChoice Wholesale Personal Super. He is currently receiving employer SG based on a $100,000 p.a. salary.
Feature working in background
The Retirement Income Optimiser operates automatically until Harry retires. At 65 he meets a condition of release and elects to defer commencing a lifetime pension until he retires at 67.
Super at 67
Harry’s balance has grown to $737,286. He allocates 70% to an account-based pension and 30% to a lifetime pension.
Centrelink assessment
Because of the Retirement Income Optimiser, only $23,580 is assessed for the lifetime pension under the assets test.
Outcome
Harry receives an additional $572 per fortnight in Age Pension. His retirement income blends an account-based pension, a lifetime pension and the Age Pension – with the lifetime pension and Age Pension providing income for life.
Harry's Super at 67
Harry’s retirement income projection – a mix of account-based pension, lifetime pension and Age Pension, with the lifetime pension and Age Pension providing income for life.
Harry’s retirement income projection
A simplified illustration of how the Retirement Income Optimiser could support a client’s retirement income and Age Pension outcome.
This example uses a number of assumptions and may not reflect the actual outcomes of any particular person. It is based on our understanding of relevant laws and regulations as at May 2026 and is subject to change. The information is of a general nature only. It is not intended to constitute financial, taxation or legal advice and should not be relied on as such.
- All results in today’s dollars (assuming CPI 2.5% p.a.).
- Lifetime pension: 5% per annum annual payment indexed to CPI of 2.5%. As the lifetime pension product is not yet available in FirstChoice, this lifetime pension projection is for illustrative purposes only and does not represent the product features or recommendation on the annual payment rate.
- SG 12% on salary of $100,000 indexed at 3.7%
- Earning rate 6.2% (net of tax and fees) from age 47 to 65, and 6.7% p.a. (net of fees) from age 65 in accumulation super and account-based pension
- Assumed upper deeming rate 5% p.a. At age 67, deemed purchase amount $555,400 less account-based pension commutation $516,100 = $39,300. Centrelink assessable asset value = 60% x $39,300 = $23,580.
- Age pension calculation assumes $10,000 other assets and single homeowner
- Additional Age Pension of $572 per fortnight at age 67 compares Age Pension if superannuation 100% assessable in an account-based pension, compared to Age Pension if 30% invested in lifetime pension using the Retirement Income Optimiser feature and 70% in an account-based pension.
- Retirement income projection assumes Harry requires $80,000 p.a. (today’s dollar) in retirement from a combination of Age Pension, lifetime pension and Age Pension.
- This image is for illustrative purposes only and does not constitute advice.
- Withdrawals, rollovers or transfers may reduce any potential Age Pension benefit if the client has the Retirement Income Optimiser applied and later commences a lifetime pension.
- Opting out means Centrelink will not use the deemed Purchase Amount calculation, which may result in a reduced Age Pension compared with having the Retirement Income Optimiser applied.
- Lifetime pensions that comply with a capital access schedule receive concessional Centrelink treatment; the schedule limits amounts payable on death or voluntary commutation, with none payable once the client reaches life expectancy.
- CFS does not currently offer a lifetime pension – it is still being developed. If a client meets a condition of release before it is available, the Retirement Income Optimiser is switched off without affecting their super account.
One part of a complete retirement ecosystem
Retirement Income Optimiser is part of a broader CFS retirement offer, which brings together solutions, specialists and tools that help advisers design, model, implement and support retirement strategies.
- Solutions – Pension Bonus, Retirement Income Optimiser, and coming soon, CFS lifetime pension, investment bonds and retirement modelling tools.
- Specialists – FirstTech technical expertise, product specialists, BDMs and partner capability.
- Tools and implementation – Modelling, education, adviser resources and support designed to help turn complex strategies into clearer client conversations.
- Growth – A single retirement proposition designed to help advisers grow retirement capability without increasing operational complexity.
Ready to talk retirement?
Leave your details below and we’ll connect you with the right person.
Frequently asked questions
The Retirement Income Optimiser complies with IRIS (Innovative Retirement Income Stream) legislation, and is designed to convert to a lifetime income stream in retirement (either immediately or deferred to a later date), where elected by the client. The Retirement Income Optimiser helps determine the Purchase Amount that Centrelink uses under the Age Pension assets test for the lifetime pension. It calculates this amount separately from the client’s actual super balance.
It doesn’t change how your client’s super works today, but it can help improve their options and potential Age Pension outcomes later.
FirstChoice Wholesale Personal Super clients don’t have to do anything. The Retirement Income Optimiser is automatically switched on for eligible members in FirstChoice Wholesale Personal Super. Your clients can choose to opt out at any time if it’s not right for them.
FirstChoice Employer Super clients will need to actively choose to opt into the Retirement Income Optimiser. By opting in, it will change their account from ‘MySuper’ to ‘Choice’ but their fees, services, insurance and investment options stay the same.
- Advisers can submit a completed and signed Change of Client Details Form on behalf of their client.
- Members can contact CFS directly and request that the feature be deactivated. CFS is targeting launch of FirstNet capabilities to support servicing your clients via our digital channels in Q2FY27.
- Advisers can call CFS on behalf of their clients.
No. The account continues to operate exactly like a standard FirstChoice super account before retirement, with no capital set aside or locked away.
No. It simply preserves a future lifetime income option, giving advisers greater strategic flexibility at the client’s retirement.
Not necessarily. Clients who would receive the maximum Age Pension throughout retirement because of limited assets and income, or would not qualify for the Age Pension at all throughout retirement due to significant assets or income, may see no change. Suitability depends on the client’s circumstances and the rules at the time.
We're here to help
Get in touch
For adviser services contact us 8:30am - 6pm (Sydney time) Monday to Friday.
FirstTech: 9am - 5:30pm Monday to Friday.
¹ Centrelink upper deeming rate, as at 01 August 2026
² The purchase amount utilised by Centrelink is dependent on the amount of super the member allocates to the lifetime pension.
Adviser use only.
Disclaimer
Avanteos Investments Limited ABN 20 096 259 979, AFSL 245531 (AIL) is the trustee of the Colonial First State FirstChoice Superannuation Trust ABN 26 458 298 557 and issuer of FirstChoice range of super and pension products. Colonial First State Investments Limited ABN 98 002 348 352, AFSL 232468 (CFSIL) is the responsible entity and issuer of products made available under FirstChoice Investments and FirstChoice Wholesale Investments.
Information on this webpage is provided by AIL and CFSIL. It may include general advice but does not consider your individual objectives, financial situation, needs or tax circumstances. You can find the target market determinations (TMD) for our financial products at https://www.cfs.com.au/tmd which include a description of who a financial product might suit. You should read the relevant Product Disclosure Statement (PDS) and Financial Services Guide (FSG) carefully, assess whether the information is appropriate for you, and consider talking to a financial adviser before making an investment decision. You can get the PDS and FSG at www.cfs.com.au or by calling us on 13 13 36.