What is a non-commutable allocated pension?

A non-commutable allocated pension (NCAP) is an allocated pension that can be purchased with preserved superannuation benefits. It provides a flexible and tax-effective way for people to access their superannuation benefits from preservation age (currently 55), without having to choose between full-time employment and full-time retirement.

An NCAP cannot be exchanged for a superannuation lump sum benefit, unless:

• you convert the pension back into accumulation phase
• you die, or
• you need to pay out the pension to purchase another non-commutable income stream.