Retirement Bonus

Start your retirement with a little extra

What is the Retirement Bonus?

If you’ve been with Mercer Super for a year or more, you may be eligible for a one-time payment when you open a Mercer SmartRetirement Income (MSRI) allocated pension account.

Important date:

The bonus is coming on Wednesday 28 May 2025¹

The Retirement Bonus is a tax saving Mercer Super passes on to eligible members when they transfer funds from their Mercer Super account, or their MSRI Transition to Retirement (TTR) account, and open an MSRI allocated pension account and meet the eligibility criteria.

How does it work?

1 Before you retire:

When we invest your super, or your TTR account balance, we set aside money each year to cover any capital gains tax we might owe on the profits of your investment earnings (this is called capital gains tax).

2 Moving to a tax-free environment:

When you transfer your money to an MSRI allocated pension account, your investment earnings become tax-free. This usually means we pay less in capital gains tax.

3 Receiving your bonus:

If you’re eligible, we’ll pay the money set aside for tax directly into your MSRI account as a bonus for staying with us. And you don’t need to do anything!

Who is eligible for the bonus?

You may be eligible for the Retirement Bonus if you answer yes to all of the following:

Are you eligible to start an MSRI allocated pension?
Are you using money from Mercer Super account(s) held in your name to start an allocated pension with MSRI?
Have you held the Mercer Super accumulation account or the MSRI TTR allocated pension account for at least 12 consecutive months before you transfer to MSRI?

The Retirement Bonus is a one-time payment. If you’ve received it from Mercer Super before, you are not eligible. The bonus also does not apply to money invested in some investment options:

Cash or fixed interest options, or
Mercer Direct

All other Mercer Super investment options are eligible.

How is the Retirement Bonus calculated? 

Your Retirement Bonus is based on two things:

The amount you transfer to begin your MSRI allocated pension account from eligible Mercer Super investment options
The Retirement Bonus rate² which is currently 0.70% of the amount you transfer

Depending on how much money you transfer to an MSRI allocated pension, you could get a bonus of up to $12,600.

Important: The Retirement Bonus counts toward your transfer balance cap, which limits the amount of super you can transfer into a tax-free pension. To avoid exceeding the cap, consider your potential bonus amount when starting your MSRI allocated pension account.

_{2 The Retirement Bonus Rate is determined on a regular basis, depending on the tax position of the Mercer Super Trust, and is the same regardless of which eligible investment option(s) you transfer from.}

How much could you get?

Here’s a quick guide to see how your bonus might look.

Eligible Transfer Balance	Retirement Bonus rate (0.70%)	Retirement Bonus*
$100,000	x 0.007	$700
$150,000	x 0.007	$1,050
$250,000	x 0.007	$1,750
$500,000	x 0.007	$3,500
$750,000	x 0.007	$5,250
$1,000,000	x 0.007	$7,000
$1,800,000	x 0.007	$12,600

_{* Subject to meeting eligibility requirements and the amount you transfer in, you could receive a Retirement Bonus of up to $12,600. The actual bonus amount may vary depending on the eligible amount transferred and the current bonus rate.}

_{The current Retirement Bonus rate is 0.70%.}

_{The Retirement Bonus is at the discretion of Mercer Super, and we reserve the right to change or stop offering the Retirement Bonus at any time without prior notice. We may also change how the payment is calculated or paid (including determining that the Retirement Bonus rate is zero) or we may change any other terms and conditions associated with the payment.}

_{This table is a guide only.}

Examples of how the Retirement Bonus is applied.

Example 1

Mary Jones is 61 years old and has decided to retire permanently from the workforce.

Mary decides to open an MSRI allocated pension account. She will use the money from her Mercer SmartSuper accumulation account to fund this new account.
Mary has been a Mercer Super member since 1 April 2020, and has never received a Retirement Bonus from Mercer Super.
At the time she transfers her money to the pension account Mary’s super balance is invested in:
- Mercer Growth $300,000
- Mercer Cash $50,000

What is Mary’s Retirement Bonus?

As the bonus does not apply to cash investment options, Mary’s bonus is calculated on her eligible Mercer Growth investment balance of $300,000.

The current Retirement Bonus Rate is 0.70%.

Eligibility for the Retirement Bonus

Mary is eligible to receive a Retirement Bonus of $2,100.

($300,000 x 0.70% = $2,100).

Example 2

Raj Singh is 65 years old and has a total of $1,975,000 in a Mercer Business Super account, which he opened in 2000.

Raj is currently invested as follows:

Mercer SmartPath: $1,125,000
Mercer Australian Shares: $425,000
Mercer High Growth: $75,000
Mercer International Shares: $350,000

Raj makes the decision to retire and transfer the maximum eligible under the Transfer Balance Capheld in the Mercer Business Super account to an MSRI allocated pension account.

To avoid exceeding the Transfer Balance Cap, Raj limits the transfer amount to $1,885,000.

The Retirement Bonus is calculated on the maximum amount of $1,800,000, even though Raj is transferring a total of $1,885,000. The current Retirement Bonus Rate is 0.70%.

Eligibility for the Retirement Bonus

Raj is eligible to receive the maximum Retirement Bonus of $12,600.

($1,800,000 x 0.70% = $12,600)

Example 3

Carlos Lopez is 67 years old and submits an application to open a MSRI allocated pension account. He will use the money from his employer accumulation account with Mercer Super to fund this new account.

The Mercer Super employer accumulation account was opened on 13 September 2024. Shortly afterwards, Carlos transferred his super from another super fund.
He has not received a Retirement Bonus from Mercer Super before.
At the time of his transfer to the pension account, his investments were as follows:
- Mercer SmartPath:  $175,500
- Mercer Growth: $52,000

Eligibility for the Retirement Bonus

As Carlos has not held the Mercer Super employer accumulation account for 12 months or more, he is not eligible to receive a Retirement Bonus.

Retirement Bonus FAQs

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Why do you pay a Retirement Bonus?

The Retirement Bonus allows us to pass any tax savings on to you. We allocate money that may be needed to pay tax on the assets that accumulation accounts are invested in. When money moves into an allocated pension, it’s in a tax-free environment, which reduces the tax we may need to pay.
Who is eligible to receive a Bonus?
To be eligible, you must meet all of the criteria below:
- You are eligible to open an MSRI allocated pension account.
- You have held an accumulation super account and/or pre-retirement phase TTR allocated pension account within Mercer Super for the last 12 consecutive months in your name before opening a retirement phase allocated pension (or before the TTR allocated pension converts to retirement phase) with at least one of the investment holdings currently invested in an eligible investment option.
  - Eligible investment options include all investment options offered in an accumulation super account or pre-retirement phase TTR allocated pension in the Mercer Super, but excludes any investment in a cash, fixed interest option or the Mercer Direct investment option.
- You have not previously received a Retirement Bonus from Mercer Super.
Who is not eligible to receive a Bonus?
- New members opening a MSRI TTR allocated pension account.
- New members to Mercer Super who are moving their super from another super fund to open an MSRI allocated pension account.
- Members using money from an insurance claim or superannuation death claim to open an MSRI allocated pension account.
- Members using money from a family law settlement to open an MSRI allocated pension account.
- Members transferring any portion of their balance from an account fully or partially invested in a defined benefit to open an MSRI allocated pension account.
- Members who have been with Mercer Super for less than 12 months.
- Members who have all their super or TTR balance in investment options that are not eligible.
- Members who have already received a Retirement Bonus from Mercer Super.
When and how will I receive the Bonus?

At the time of setting up your new MSRI allocated pension account, you will be automatically assessed for eligibility to receive the bonus. If you meet the eligibility criteria, the bonus amount will be credited to your MSRI allocated pension account as part of the account set up process and you will be notified of the bonus amount in your Welcome Letter.

If you already hold a TTR allocated pension account and are turning 65, you may be eligible to receive the Retirement Bonus when you turn 65 and your account is moved into the tax-free retirement phase. Again, you will be automatically assessed for eligibility to receive the bonus and if you meet the eligibility criteria, the bonus amount will be credited to your Mercer TTR allocated pension and you will be notified of the bonus amount in writing.
Will my Bonus count towards the transfer balance cap?

Yes, your Retirement Bonus will count toward the transfer balance cap (currently $1.9 million for the 2024-25 financial year). This is the limit on the total amount of super that can be transferred into the retirement phase. You can check your personal transfer balance cap in ATO online services at my.gov.au.

You’ll still need to make sure that the amount you transfer from your Mercer Super accumulation account or TTR allocated pension account, plus your Retirement Bonus and any other money you hold in other retirement income accounts, does not exceed this cap.
Does the Bonus apply to all investment options?

Only the balance invested in eligible investment options will be included in the calculation of the Retirement Bonus. Eligible investment options include all Mercer investment options offered in a Mercer Super accumulation account or TTR allocated pension account, but excludes any investment that is fully invested in cash, fixed interest or Mercer Direct investment options.
Can I get the Bonus when I open a TTR allocated pension?

The Retirement Bonus does not apply when you open a TTR allocated pension account, which is still in a taxed environment. However, you may be eligible for the payment at the date your TTR allocated pension converts to retirement-phase allocated pension (refer to ‘How a transition to retirement allocated pension works’ in the ‘MSRI pension options’ section of the Product Disclosure Statement (PDS)).
Can I get more than one Bonus?

No, you can only get one Retirement Bonus no matter how many accounts you have with us. However, if you have never received the Retirement Bonus from Mercer Super and you consolidate⁴ your Mercer Super accumulation account and/or TTR allocated pension account/s before or at the time of opening a MSRI allocated pension account, your Retirement Bonus will be calculated on the total combined balance provided you satisfy all the eligibility criteria.
Will the Bonus be paid only to new MSRI members?

If you have already established your MSRI allocated pension account, you will not be eligible to receive the Retirement Bonus on these funds.

However, should you hold additional funds in an accumulation or TTR allocated pension account with Mercer Super and are looking to transfer those funds to a new MSRI allocated pension account, you may be eligible to receive the Retirement Bonus on those transferred funds should you meet the eligibility criteria.
Can I opt out of receiving the Bonus?

No, members are automatically assessed for eligibility to receive the Retirement Bonus as part of the account opening process or when their TTR allocated pension is converted to retirement phase upon reaching age 65.

Therefore, members cannot opt out of receiving the Retirement Bonus for any reason.

Other things you should consider

For new MSRI allocated pension members, the annual pension payment amount will be calculated on the total opening account balance including any Retirement Bonus amount you receive.

For TTR allocated pension members who receive a Retirement Bonus when the account is converted to retirement-phase allocated pension, the annual pension payment amount will be updated at annual review on 1 July next.

At any time, the trustee may stop paying Retirement Bonus payments at our discretion and without prior notice to you. We may also change the way the payment is calculated or paid (including determining that the Retirement Bonus Rate is zero) or we may change any other terms and conditions associated with the payment. If you close your MSRI account within the first 12 months of joining, the Trustee reserves the right to deduct the total Mercer Super Retirement Bonus from the balance before the remainder is paid to you.

Not sure where to start

We recommend you consider your personal circumstances and seek independent financial advice before making decisions about your super.

If you’re not sure where to start, our Advice Support Team⁵ is here to help. Complete the callback request form, and we’ll work with you to understand your current situation before connecting you with the advice options that may work best for you.

Request a call

Need more help? We’ve got you covered.

Have questions about Mercer Super or need more information about becoming a member? We’d love to hear from you.

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Contact our Helpline

Visit the member support page or call 1800 682 525, Monday to Friday, 8am-7pm (AEST/ AEDT).

^{1 The Mercer SmartRetirement Income Product Disclosure Statement (PDS) will be updated to include the Retirement Bonus from on or around 28 May 2025.}

^{2 The Retirement Bonus Rate, is determined on a regular basis, depending on the tax position of the Mercer Super Trust, and is the same regardless of which eligible investment option(s) you transfer from.}

^{3 The 2024/2025 Transfer Balance Cap is $1,900,000. The Retirement Bonus is currently paid on a maximum transfer balance of $1,800,000 ie $12,600.}

^{4 Combining your super can be a significant financial decision. If you decide to combine all or part of your other super account(s), carefully consider how this may have an impact on your existing insurance, contribution and tax arrangements, fees or charges, or any other benefits you may lose. If you intend to claim a tax deduction on your personal contributions, you will need to provide your existing fund with a notice of intent to claim and receive confirmation it's been processed before combining your super. We recommend you seek financial advice before deciding whether to combine your super accounts.}

_{5 As a Mercer Super member, you have access to limited financial advice about your Mercer Super account at no extra cost. For members with advice needs outside their Mercer Super account, our Advice Support Team can refer you to a Mercer Financial Adviser who can provide comprehensive tailored advice to help you with your targeted financial goals. This is a fee-based service, and you will be informed of all costs before any work is undertaken. The first meeting is complimentary.}

_{Disclaimer: This content has been prepared on behalf of Mercer Superannuation (Australia) Limited ABN 79 004 717 533, Australian Financial Services Licence #235906, the trustee of the Mercer Super Trust (‘Mercer Super’) ABN 19 905 422 981. Any advice is of a general nature only, and does not take into account the personal needs and circumstances of any particular individual. Prior to acting on any information, you need to take into account your own financial circumstances. The material contained in this document is based on information received in good faith from sources within the market and on our understanding of legislation and government press releases at the date of publication which we believe to be reliable and accurate. Neither Mercer nor any of its related parties accepts any responsibility for any inaccuracy. Please consider the Product Disclosure Statement, Product Guide, Insurance Guide, and Financial Services Guide before making a decision about the product, or seek professional advice from a licensed, or appropriately authorised financial adviser if you are unsure of what action to take. Past performance is not a reliable indicator of future performance. 'MERCER' is a registered trademark of Mercer (Australia) Pty Ltd ABN 32 005 315 917.}

Retirement Bonus

What is the Retirement Bonus?

How does it work?

1

Before you retire:

2

Moving to a tax-free environment:

3

Receiving your bonus:

Who is eligible for the bonus?

How is the Retirement Bonus calculated?