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.
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If however you took a higher amount than the minimum, say $30,000 pa, the amount of income withdrawn would be greater than the annual earnings and accordingly your account based pension balance will be depleted in around 15 years.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 has temporarily reduced minimum drawdown requirements for account-based pensions and similar products by 50% for the 2019–20 financial year, which has been extended to the 2021-22 and 2022-23 financial years as well.
