Flexi Pension
You can choose how much and how often you're paid, and you can split your income payments across up to four bank accounts.
Your annual income
You tell us how much income you’d like to receive from your Flexi Pension account over the financial year, keeping in mind that it must meet the minimum amount set by the government.
You should avoid withdrawing more than you need, as you can’t put money back into your account once it has commenced.
Find your minimum annual income
Your minimum annual income amount is a percentage of your account balance calculated on commencement and 1 July each subsequent year.
Each financial year we’ll tell you the new minimum amount, and you can then choose to increase or decrease the amount you receive. If we don’t hear from you, we’ll pay you the same income amount as the previous year, or, if that’s too low, the minimum amount.
The annual minimum withdrawal rates are shown in the table below.
| Your age | Minimum withdrawal rate (% of account balance on 1 July) |
|---|---|
| Under 65 | 4% |
| 65 - 74 | 5% |
| 75 - 79 | 6% |
| 80 - 84 | 7% |
| 85 - 89 | 9% |
| 90 - 94 | 11% |
| 95 or older | 14% |
No minimum annual payment is required if your Flexi Pension started between 1 June to 30 June. A pro-rata minimum payment is required if your Flexi Pension started before 1 June.
The maximum withdrawal rate for transition to retirement (TTR) members is 10% of your account balance, which is calculated on 1 July each year.
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).
Your payments
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.
Payment frequency
You can choose to receive your income payments:
- fortnightly
- monthly
- 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.
Complete the form
Learn more
For more information about your Flexi Pension, refer to the Flexi Pension Product Disclosure Statement (PDF, 2.11 MB).
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.
Your payments
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.
Payment frequency
When you start a lifetime income streams you choose to receive your payments fortnightly or monthly—this can’t be changed later.
For more information about your lifetime income stream, download the Lifetime Income PDS (PDF, 1.15 MB) or the Defined Benefit Indexed Pension Product Disclosure Statement (PDF, 1.9 MB).
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.
If you have any questions about income payments, please call us on 1800 331 685 or contact us.