Your regular income payments from your pension account will change on a yearly basis. You can automatically increase payments. You also need to elect whether you wish to receive the minimum or maximum amount you are allowed as set out by the Government.
Automatically increase your payments
You can elect to have your pension payment automatically increased annually in line with the CPI or by a fixed percentage, as long as the payments remain within the minimum and maximum levels set out by the Government.
The Government has set annual minimum limits on the amount you must withdraw in any one financial year. Superannuation pension minimum drawdown rates were reduced by 50 % for the 2019-20, 2020-21, 2021-22 and 2022-23 income years as a relief measure during the pandemic.
For the 2023–24 financial year, the 50% reduction in the minimum pension drawdown rate will no longer apply. This means as of 1 July 2023, minimum payments for pensions will revert to normal percentages.
We'll calculate these values based on your age and the venue of your pension account balance on commencement of your pension, and again at 1 July each financial year. We'll advise you of these amounts in writing each year, and ask you to nominate the amount of pension you require.
How to calculate your payments
To calculate your minimum pension payment, multiply the percentage factor relating to your age by your pension account balance using the table below.
Min % withdrawal,
from 1 July 2023^
Reduced rates by 50% for 2019–20,
2020–21, 2021-22 and 2022-23 income years (%)^
|65 - 74||5%||2.5%|
|75 - 79||6%||3%|
|80 - 84||7%||3.5%|
|85 - 89||9%||4.5%|
|90 - 94||11%||5.5%|
There are no maximum payment limits for account-based pensions. Under a Transition To Retirement (TTR) pension the maximum you can withdraw is 10% of the balance of your account when you commence your TTR pension or at the beginning of subsequent financial years.
Transition to retirement is ‘non-commutable’, and so you are generally unable to withdraw lump sum amounts until you permanently retire from the workforce.
*age is your age at commencement and in respect of subsequent years, your age at 1 July.
^in the year in which your pension commences, the minimum payment is pro-rated according to the number of days remaining in the financial year.
If you didn’t nominate an amount
If you don’t nominate your pension payment amount for any subsequent year, your pension payment will be equal to the dollar value of your pension payment for the previous year, plus any nominated indexation (if applicable). We’ll also increase your pension to the minimum pension payment amount if needed.