In this guide
Key points about simple account-based pensions:
- Tax treatment: Withdrawals (including pension payments) and investment returns are generally tax free.
- Minimum pension payments: Your annual minimum pension is an age-based percentage of your account balance.
- Maximum pension payments: Pensions in the retirement phase have no maximum pension payment and lump sum withdrawals are permitted. Transition to retirement pensions impose a maximum 10% annual withdrawal.
If you have an account-based pension, the new financial year presents an opportunity to review your payments.
It’s a time to think about whether you’re happy with your current income or would prefer to withdraw a larger amount and enjoy a more comfortable lifestyle.
Alternatively, perhaps you’re concerned about whether your current payments will exhaust your savings too quickly.
You may also find you must increase your payments to comply with minimum withdrawal requirements. Perhaps you have had a milestone birthday that triggers an increase in your minimum withdrawal percentage, or strong investment returns have increased your balance since last year.
Learn more about minimum pension withdrawals.
This article focuses on simple account-based pensions. Lifetime products (including lifetime account-based pensions) operate using different rules.
Are my payments sustainable?
THIS IS A MEMBERS GUIDE
Get independent retirement guidance
Understand the key decisions in retirement, from drawing income from your super to Age Pension entitlements and managing your retirement income.
- Make sense of complex rules
- Stay up to date
- Make more confident decisions
Leave a Reply
You must be logged in to post a comment.