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Understand your Income Account drawdown limits

When updating the amount you draw from your Income Account, you need to keep in mind that the total amount is subject to minimum (and maximum for Pre-Retirement Income Accounts) levels set by the Government.

  • For Pre-Retirement Income Accounts the annual payment amount must be a minimum based on your age (see table below) and a maximum of 10% of your total account balance.
  • For Post-Retirement Income Accounts the annual minimum payment is based on your age and your account balance at 1 July each year (see table below).

Minimum payments

The minimum annual payment account for both types of Income Account is:

Age % of account balance
2021/22* 2022/23 onwards
Under 65 2% 4%
65 – 74 2.5% 5%
75 – 79 3% 6%
80 – 84 3.5% 7%
85 – 89 4.5% 9%
90 – 94 5.5% 11%
95 or more 7% 14%

* Temporary reduction in minimum payment amounts for the 2020/21 and 2021/22 financial years

Example: Helen, age 66

Helen commenced an Income Account on 1 July 2021, with $240,000. For the first year, her minimum payment is 2.5% of her opening account balance ($6,000). From 1 July 2022, her minimum payment will increase to 5% of her account balance.

Helen has chosen to receive her payments monthly so her minimum monthly payment is $500 per month.

Maximum payments (Pre-Retirement Income Accounts only)

A maximum of 10% of your account balance applies to Pre-Retirement Income Accounts.

There is no maximum payment amount for Post-Retirement Income Accounts.

Example: Michael, age 58

Michael commences a Pre-Retirement Income Account, with $240,000. The maximum he can take out in his first year is $240,000 x 10% = $24,000 p.a.

As Michael has chosen to receive his payments monthly his monthly maximum payment is $2,000 per month.

Need to change your bank account details?

If you need to change the bank account that receives payments from your income account, you will need to provide us with a completed Income Account payment change form and provide a copy of your bank statement as evidence of the account details. Payments can only be made to a bank account that is in your name or a joint account to which you are a party.

Unfortunately a change to your bank account details cannot be made using Member Online.

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