The minimum amount you're legally required to withdraw from your account annually depends on your age when you first open your account, and is reset 1 July each year. 

For a Retirement Super Pension, there's no maximum limit on the amount of your pension payments. If you have a Pre-retirement Super Pension, you can withdraw a maximum of 10% of your TransPension balance as pension payments each year.

Temporary reduction of minimum pension payments

The Government is temporarily reducing the minimum drawdown requirements for account-based pensions (such as the Retirement Super Pension and the Pre-retirement Super Pension) by 50% for 2019-20 and 2020-21.

This measure may benefit retirees by reducing the need to sell investment assets to fund minimum drawdown requirements.

You don’t have to do anything to qualify for the reduced drawdown rates. These will be available to anyone with an account-based pension.

Note: During the first financial year of your account, the minimum payment is proportional to the number of days left until 30 June.

Drawdown rates for 2019-20 and 2020-21

When you first open your account, and on 1 July each year thereafter, if you are aged... The minimum amount of your account that must be drawn is...
 Under 65  2%
 65 to 74  2.5%
 75 to 79  3%
 80 to 84   3.5%
 85 to 89   4.5%
 90 to 94  5.5%
 95 or more  7%

Drawdown rates for all other years

When you first open your account, and on 1 July each year thereafter, if you are aged... The minimum amount of your account that must be drawn is...
 Under 65  4%
 65 to 74  5%
 75 to 79  6%
 80 to 84   7%
 85 to 89   9%
 90 to 94  11%
 95 or more  14%

How the lower drawdown rates could help you

The Government has put together an example of how a retiree might use the reduced drawdown rate to preserve their capital while still drawing an income from their account-based pension.

See worked example

Deciding how much to take as a pension

The quicker you draw down the quicker your pension pot runs out. However, it can be hard to work out when this might be, as many factors play into this (including investment returns and the cost of your account).

ASIC has developed a calculator to help you see how long your pension could last depending on factors including balance, projected returns, and age at which your pension was started.

Note: No calculator can predict how much you will have to retire on - they are models only. TWUSUPER is not responsible for the projections given and you should always seek appropriate financial advice before making an investment decision.

Use calculator

Speak with a retirement specialist

Instead of sifting through information to find out what's relevant to you, ask to speak to a retirement specialist. There's no extra cost to use this service. The team's available between 9am and 5pm (AEST/AEDT) on 1800 222 071.

Use the form below to request a call back. Note that the call back service is available for Australian residents only. If you're overseas, please call +61 3 9192 4414.

Request a call back

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