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10 Superannuation

Superannuation Retirement Income Streams

Account Based Income Streams

The minimum annual amount of income payments you must take from account-based income streams is based on your age, as outlined in the table opposite.  As previously stated, there is no limit to the maximum income that can be withdrawn.

Let's say, you have $300,000 in your account-based pension at age 60, which has a minimum of 4% drawdown, and it is invested in cash earning 5%. As you are withdrawing less than the annual earnings, your account balance will continue to increase slightly.

If however you took a higher amount than the minimum, say $30,000 pa, the amount of income withdrawn would be greater than the annual earnings and accordingly your account based pension balance will be depleted in around 15 years.

Please note: The Government temporarily reduced minimum drawdown requirements for account-based pensions and similar products by 50% for the financial years 2019–20 through to 2022-23.

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