Flexi Pension
You can choose how much and how often you're paid, and you can split your payments across up to 4 bank accounts.
Your annual pension income
You tell us how much income you’d like to withdraw from your pension account over the financial year, keeping in mind that it must be over the minimum amount set by the government.
You should avoid withdrawing more than you need, as you can’t put money back into your pension account.
Find your minimum annual pension income
Your minimum annual pension income amount is calculated on 1 July each year.
Each financial year we’ll tell you the new minimum amount, and you can then choose to increase or decrease your annual withdrawal. If we don’t hear from you, we’ll pay you the same amount as the previous year, or, if that’s too low, the minimum amount.
Reduction in minimum drawdown requirements due to COVID-19
To support retirees, the Government has reduced the annual minimum drawdown requirements for pension payments by 50% for the 2020-21 financial year.
The 50% reduction will apply automatically to Flexi Pension and transition to retirement (TTR) pension accounts in 2020-21 where members have elected to receive the annual minimum drawdown amount.
| Your age | Minimum amount, no maximum (% of account balance) |
|---|---|
| Under 65 | 2% |
| 65 - 74 | 2.5% |
| 75 - 79 | 3% |
| 80 - 84 | 3.5% |
| 85 - 89 | 4.5% |
| 90 - 94 | 5.5% |
| 95 or older | 7% |
The maximum annual pension income 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 pension 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 pension amount. This keeps as much money in the pension as possible, where it can generate investment earnings without being taxed.2
1 If you have a Flexi Pension – Transition to Retirement (TTR), 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 Flexi Pension – TTR 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 pension last?
Your payment amounts, lump-sum withdrawals and investment returns all affect how long your 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.
Your payments
The amount you receive in individual payments is based on your annual pension income, divided by the number of pay periods you’ll receive over the year.
This calculation 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 recieve 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).
Indexed pensions
Your annual pension income
When you start your indexed pension, we calculate your annual pension income using a formula. On 1 July each year, your annual pension income is indexed in line with the Consumer Price Index.3 Once the new inflation rate is applied, we’ll write to you with details of your new annual pension income.
Annual pension income for indexed pensions generally increased by 2.2% effective 1 July 2021 for the 2020-21 financial year.
3 Indexed in line with CPI 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), 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 pension income, divided by the number of pay periods you’ll receive over the year.
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 an indexed pension you choose to receive your payments fortnightly or monthly—this can’t be changed later.
For more information about your indexed pension, download the Commerical Rate Indexed Pension Product Disclosure Statement (PDF, 3.3 MB) or the Defined Benefit Indexed Pension Product Disclosure Statement (PDF, 1.9 MB).
Your payments and the Government Age Pension
If you have a Flexi Pension or Indexed Pension, 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 pension payments, please call us on 1800 331 685 or contact us.