Mercer Wealth Solutions has launched a new pension aimed at those who want to draw income from super without retiring permanently.

The Transition to Retirement Allocated Pension takes advantage of legislation implemented on July 1. 

This allows people 55 and over to reduce working hours without reducing income by topping up their reduced wage with a regular income stream from superannuation savings.

Before July 1 you could only access your superannuation once you turned 65 or retired.

"It allows them to access super from their preservation age via a regular pension, while continuing to grow their super tax effectively and to work the hours they want," Mercer's Wealth Solutions head David Anderson said.

If you are 60 years or older you will not be taxed on the income you receive from the Transition to Retirement Allocated Pension. This income is also not included in your income tax return.

If you are under the age of 60 you may receive some of your income from your Transition to Retirement Allocated Pension tax free. The remaining income will be subject to tax, but a 15 per cent tax offset will apply to this portion.

The Mercer pension offers 34 investment options, including growth, shares, property, diversified alternatives and socially responsible investments using a multi-manager approach.

Investors are also offered limited financial advice over the phone as well as a full face-to-face advice option.

"Personal financial advice is a critical service for pre-retirees who need to navigate complex investment decisions, social security, insurance, estate planning and superannuation," Anderson said.

Other services include access to financial education through seminars, webinars and podcasts, 24/7 online access to personal accounts and printed communication.

A March Mercer survey found that only 49 per cent of respondents were aware of allocated pensions.

"Bundling the Transition to Retirement Allocated Pension with member education and advisory services makes a lot of sense," Anderson said.