Minimum pension payments

Account-based pensions are subject to annual minimum pension payments based on a fund member’s age and account balance. The minimum payment amount for a superannuation income stream (pension) is the account balance on 1 July (or account balance at start of income stream if a new income stream) multiplied by the percentage factor.

The percentage factor is is based on the beneficiary’s (recipient of income stream/pension) age on 1 July in the financial year in which the payment is made (or, if a new pension, the age of the beneficiary on commencement of the pension/income stream).

Set out below are all SuperGuide articles explaining Minimum pension payments.

SMSF compliance: ATO’s hit list for the 2015/2016 year

Each year, the ATO publicises a list of compliance areas that the regulator intends to target when reviewing SMSFs during the financial year. This is the hit list for the 2015/2016 year.Note: The ATO’s compliance approach is to deal with less serious breaches in a collaborative way with the SMSF … [Read more...]

Superannuation rates and thresholds for 2015/2016 year (and 2014/2015 year)

Note: This article lists the latest superannuation rates and thresholds for the 2015/2016 year, and for the 2014/2015 year, and also for earlier financial years.One of the most searched-for superannuation thresholds is the concessional contributions cap for the latest financial year. For the … [Read more...]

Retirement and tax: What are the minimum pension payment rules?

Q: I am 63. I want to retire next year but I am not sure if I want to access my super benefits yet. I have heard that when I retire, I must withdraw some super benefits each year, otherwise I won’t receive tax-free super benefits. Can you please clarify the rules for me?A: You question is really … [Read more...]

Super pensions: Is there an upper limit to how much we can withdraw?

Q: I am aware that the minimum amount of pension withdrawal is 4% (for under 65s) of the pension account balance. Is there now any MAXIMUM amount of pension required to be drawn from a super fund? If no maximum payment is required, is this still the case for account based pensions, transition to … [Read more...]

SMSF pension payments: A little bit under is OK

SuperGuide often receives questions from readers asking what happens if they don’t withdraw the minimum pension amount required to be paid each year from their pension account, especially when the underpayment is due to an honest mistake, or due to circumstances beyond their control.Before … [Read more...]