Flexi Pension members
You need to withdraw a percentage of your Flexi Pension account balance each year in line with government requirements. This is known as your ‘minimum amount’ and it is based on your age at the start of your pension and then each 1 July.
If you have a Transition to Retirement pension, the same minimum annual payments apply to you, but your annual pension is limited to a maximum of 10% of your pension balance at commencement and then at the start of each financial year.
Minimum amount you must take each year
Your minimum amount
(% of account balance)
|55 – 64
65 – 74
75 – 79
80 – 84
85 – 89
90 – 94
95 or older
Your minimum amount is recalculated each financial year, based on your age and account balance at 1 July.
When we recalculate your minimum amount, we’ll write to you with the new details. We’ll also send you a form to change your annual pension income and frequency if you want to, subject to the new minimum amount.
Annual payment amount – questions to consider
When deciding on your annual payment amount, it’s worth asking yourself the following questions:
- What are my cashflow needs for the coming year?
It’s important to get this right to avoid withdrawing more than you actually need from the tax-free environment of your pension. If you take out too much, you cannot put any excess funds back into your pension and, depending on what you do with the excess, you may have to pay income tax on any interest you earn.
- Have my financial commitments changed?
Your pension amount can be adjusted to allow for any major changes, and to keep as much in the pension as possible.
- Do I have any major expenses in the year ahead?
While you can adjust your pension payments to cover any major expenses, you may also keep drawing your regular payment amount and withdraw a lump sum for major expenses1, as needed.
- How fast is my pension balance depleting?
How will this affect the longevity of my pension? If you take out more than your pension earns, you will be withdrawing some of your capital, which may ultimately affect how long your pension lasts. Read more about pension longevity.
- Will increasing my pension payments affect my Age Pension eligibility?
If you started your pension before 1 January 2015 and have continuously received the Age Pension from 31 December 2014, if you increase your pension payments, more income may be assessed under the income test.2
Of course, you don’t need to wait until July to make changes to your account. Your Flexi Pension gives you the flexibility to change your annual payment amount, payment frequency, and/or payment drawdown method whenever you like.
To change your:
Find out more about changing your payment drawdown method.
Indexed pension members
If you have a UniSuper indexed pension, you can nominate a payment amount when you start your pension, but you can’t subsequently vary the amount or frequency of your payments.
Your annual payment amount does change once a year, each 1 July when your annual pension is indexed in line with CPI for the preceding 12 months ending 31 March.
Once the new CPI has been applied to your annual pension, we’ll write to you with details of your new annual pension income.
1. If you have a Transition to Retirement Pension, you can only make lump-sum withdrawals in very limited circumstances. See Your guide to pensions – Flexi Pensions for more information.
2. This does not apply if you commenced your Flexi Pension from 1 January 2015, or weren’t eligible for the Age Pension until after 31 December 2014, as your Flexi Pension is subject to deeming rules. Read more about the deeming of account-based pensions like the Flexi Pension.