Your pension payments


Understand your pension payment options.

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 is based on your age when your pension starts, and then at 1 July each year.

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 thereafter.

Minimum amount you must take each year

Your age

Your minimum amount
(% of account balance)

Under 65 4%
65 – 74 5%
75 – 79 6%
80 – 84 7%
85 – 89 9%
90 – 94 11%
95 or older 14%

Your minimum amount is recalculated each financial year, based on your age and account balance at 1 July.

Once we’ve recalculated your minimum amount, we’ll write to you with the new details.

We’ll also send you a form if you want to change your annual pension income and frequency, subject to the new minimum amount.

Annual payment amount – questions to consider

When deciding on your annual payment amount, it’s worth asking the following questions:

What are my income 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 can’t put any excess funds back into your existing pension account 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?

In addition to your regular pension payments, you can also withdraw a lump sum for major expenses, as needed.1

How fast is my pension balance reducing?

If you take out more than your pension earns in investment returns, it may affect how long your pension lasts.

Introducing a Flexi Pension minimum ongoing account balance

From 1 July 2019, Flexi Pension accounts require a minimum ongoing balance of $10,000 to remain open.

If we anticipate a pension payment or lump sum withdrawal request will take the balance of your Flexi Pension below $10,000, on processing the payment we’ll close the account, pay the entire balance into your nominated bank account and notify you of the event by post.

Will increasing my pension payments affect my Age Pension eligibility?

No, unless you started your pension before 1 January 2015. Visit the Department of Human Services website for more information.

Your Flexi Pension gives you the flexibility to change your annual payment amount, frequency, and/or drawdown method whenever you like. To change your payment amount, frequency or drawdown method, log in to your account or complete the Change of details form – pension members form.

Indexed pension members

If you have an indexed pension, you can’t vary the amount or frequency of your payments.

Your annual payment amount changes once a year on 1 July when your annual pension is indexed in line with CPI.2

Once the new CPI rate is applied to your annual pension, we’ll write to you with details of your new annual pension income.

CPI rate for 2019-20 financial year

If you have a Defined Benefit Indexed Pension or Commercial Rate Indexed Pension, please note that from 1 July 2019, the CPI rate has been set to 1.3%. This means, your pension will generally increase by 1.3% for the 2019-20 financial year. 

Where 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.

1. If you have a transition to retirement pension (TTR), you can only make lump-sum withdrawals in very limited circumstances. For more information see the Flexi Pensions PDS (PDF, 2.11MB).

2. Indexed in line with CPI for the preceding 12 months ending 31 March.