Review and update your drawdown method
There are three drawdown methods to choose from
You can choose from three drawdown methods. If your account is invested in more than one investment option and you don’t choose a drawdown method, the ‘Default’ drawdown method applies. The three methods are:
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‘Your choice’ drawdown method
The ‘Your choice’ method allows you to nominate the order of investment options from which your income payments and lump-sum withdrawals are drawn.
- Your payment is drawn from your first nominated investment option until the balance in this option runs out.
- Payments are then drawn from your next nominated investment option until that runs out, and so on.
- If the balance in a nominated investment option is lower than the payment amount, part of the payment will come out of that investment option and the rest from the next nominated investment option.
- Once your nominated investment options have been exhausted, the default order applies, until you provide us with a new drawdown instruction.
It’s important to review your drawdown order instructions from time to time.
As your payments are drawn down, the spread of your account balance across your chosen investment options will change, and the number of different assets or asset classes your balance is invested in will reduce.
Over time, your account may reflect a plan that’s different from your original intent. You should consider whether this is appropriate for your financial needs and circumstances.
Meet Ari
Ari has chosen the ‘Your choice’ drawdown method and nominates the following investment option order:
1. Cash
2. Conservative
3. Growth
4. High Growth.
Ari's payments will be drawn from the Cash investment option until the balance in this option runs out. Payments will then be drawn from the Conservative investment option, until the balance reduces to zero, and so on.
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Pro-rata drawdown method
Your income payments and lump-sum withdrawals are drawn from your investment options in proportion to the balance held in each investment option at the time of payment.
Meet Michael
Michael chooses the ‘Pro-rata’ drawdown method
At the time of his fortnightly income payment, 60% of Michael’s balance is invested in the Cash investment option and 40% in the Conservative Balanced investment option. As a result, 60% of Michaels’s payment comes out of the Cash option and 40% from the Conservative Balanced option.
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Default drawdown method
Your income payments and lump-sum withdrawals are drawn from your investment options in the following order:
1. Cash
2. Australian Bond
3. Conservative
4. Conservative Balanced
5. Australian Income 1
6. Balanced
7. Sustainable Balanced
8. Growth
9. High Growth
10. Sustainable High Growth
11. Listed Property
12. Australian Shares
13. International Shares
14. Global Environmental Opportunities
15. Australian Dividend Income 2
16. Global Companies in Asia
Your payment is drawn from the highest investment option you have in the default order until the balance in this option runs out. Payments are then drawn from the next highest investment option until that runs out, and so on.
If the balance in an investment option is lower than your payment amount, part of the payment will come out of that investment option and the rest from the next highest in the default order.
Update your drawdown method
Before setting or changing your drawdown method, it’s a good idea to review how your money is invested and consider whether to switch your investments.
To review and update your drawdown method, log into your online account below.
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Things you need to know
1The name of the Australian Income investment option changed from 28 September 2023. Prior to this date, the name of this investment option was Diversified Credit Income.
2The name of the Australian Dividend Income investment option changed from 28 September 2023. Prior to this date, the name of this investment option was Australian Equity Income.