What pension amount can I receive?
Legislation sets out the minimum annual payments that must be paid from an account based pension. (Refer to the table of minimum annual payment factors below). Transition to retirement account based pensions also have a maximum annual payment limit of 10%.
These limits are based on your age and your account balance or withdrawal benefit and are calculated when you commence your pension and at 1 July in each subsequent year. Transition to retirement account based pensions also have a maximum annual payment limit of 10%. For transition to retirement pensions, you can choose to vary your annual payment within the range of 4-10%. For all other accounts you must receive at least the minimum amount each year.
Table of minimum payment factors | |
Age of Beneficiary | Percentage factor1 |
Under age 65 | 4% |
65 – 74 | 5% |
75 – 79 | 6% |
80 – 84 | 7% |
85 – 89 | 9% |
90 – 94 | 11% |
95 or more | 14% |
Where we cannot pay the required minimum amount for a given year, we will commute your pension and transfer your account in-specie from Pension Manager to Super Manager.
Confirmation of your annual pension amount will be sent to you on or around the time by which we have received all amounts upon which your pension will be based. Your annual pension amount can be updated by your adviser online each year. Please speak to your adviser if you would like to know more about the annual minimum payments applicable to you.
The minimum percentage factors are reduced by 50% for the 2008/2009 financial year. The Government announced in the 2009 Federal Budget that it intends to extend this measure to apply in the 2009/2010 financial year. This measure has not become law at the time of publication.
1 In the first year, a pro-rata minimum payment applies if your pension commences on a day other than 1 July. In subsequent years the minimum payment amount is determined each year by multiplying the account balance by the relevant percentage factor at 1 July.
Part A of the Avenue Retirement Service PDS