Once a condition of release has been met, the SMSF is able to pay benefits to a member in the form of a pension.
There are two types of pensions that can be established in the SMSF:
Please note: These conditions apply until another condition of release is met, such as reaching age 65. After this point, if retained, it is referred to as a transition to retirement pension (pension phase).
*Note: The Government is temporarily reducing minimum drawdown requirements for account-based pensions and similar retirement income stream products, including transition to retirement pensions, by 50% for the financial years 2019–20 through to 2022–23. Therefore, the minimum pension income for the 2022-23 year is 2% for a person aged under 65 but this will revert back to 4% for the 2023/24 year.