Things to consider when deciding how much to withdraw
How much will you need this year?
If you’ll need more than last year, you may be able to increase your income amount. You can also withdraw a lump sum for major expenses.1
If you’ll need less than last year, you may be able to lower your income amount. This keeps as much money in your account as possible, where it can generate investment earnings without being taxed.2
1 If you have a Transition to Retirement (TTR) Flexi Pension, you can only make lump-sum withdrawals in very limited circumstances. For more information see the Flexi Pension Product Disclosure Statement (PDF, 2.11 MB).
2 Investment earnings on a TTR Flexi Pension are subject to tax of up to 15%, in line with other investment earnings in super.
Is the way you draw income from your investments still right for you?
You should review your drawdown method from time to time, to make sure it still aligns with your investment strategy.
How long will your Flexi Pension last?
Your payment amounts, lump-sum withdrawals, investment returns (positive or negative), and any applicable fees and costs deducted from your account all affect how long your Flexi Pension lasts. If a payment or withdrawal will take your account below $10,000, we'll close your account and pay the balance into your bank account (or an accumulation account for TTR Flexi Pension).
The amount you receive in individual payments is based on your chosen income amount and payment frequency.
The amount you receive may be adjusted in the first year of your pension, to allow for receiving fewer payments over the financial year.
You can choose to receive your income payments:
- quarterly (March, June, September and December)
- half-yearly (June and December), or
- annually (any month you like).
Change your payment amount or frequency
Change your payments online
Log in to your account and make the changes online.
Lifetime income streams
Your annual income
When you start your lifetime income stream, we calculate your annual income using a formula. On 1 July each year, your income payments are indexed in line with increases to the Consumer Price Index.3 Once the new inflation rate is applied, we’ll write to you with details of your new annual income.
Annual income for lifetime income streams generally increased by 7% effective 1 July 2023 for the 2023-24 financial year.
3 Indexed in line with the CPI increase for the preceding 12 months ending 31 March. If you commence your pension part way through the financial year (i.e. on any day other than 1 July), the first CPI indexation will be pro-rated based on the number of days as a proportion of the year, multiplied by the CPI rate.
The amount you receive in individual payments is based on your annual income and payment frequency.
This calculation may be adjusted in the first year of your pension, to allow for receiving fewer payments over the financial year.
When you start a lifetime income streams you choose to receive your payments fortnightly or monthly—this can’t be changed later.
Your income payments and the Government Age Pension
If you have a Flexi Pension or lifetime income stream, you may still be eligible to receive:
- a part or full Government Age Pension
- a concession card like the Commonwealth Seniors Health Card.
Learn more about government entitlements and obligations.