Once you start your income stream, a certain amount is required to be withdrawn from your Account Based Pension account and paid to you as your pension payment each year (i.e. minimum pension payment amount).
There is no maximum amount you can choose to receive.
Your minimum pension payment amount is re-calculated on the first day of each financial year. This year there are changes to the way the minimum pension payment amounts are calculated and we encourage you to consider this.
Minimum Pension payment amount changes for 2020/21 financial year
Due to the impact of Covid-19 on the financial markets and superannuation balances, the Federal Government reduced the minimum pension payment amounts required to be drawn from superannuation for the financial years 2019-2020 and 2020-2021.
It is important to note that if you have previously chosen to receive the minimum pension payment amount allowable, the new reduced minimum pension payment amounts will automatically apply for any payments made after 1 July 2020. However, if you would like to change your pension payment amount from the minimum (i.e. increase the amount), you can do so at any time by contacting us either by email or by telephone.
How is the minimum calculated?
The minimum pension payment amount is calculated based on the individual’s age and their pension balance at the commencement of their account, or at 1 July each year.
Old vs Temporary: New Minimum Pension Payment Amount Rates
We're here to help
If you require any further clarification or information regarding the above, please do not hesitate to contact us on (02) 9369 5333.