What are minimum annual pension payments?
Your account based pension is subject to a minimum amount that needs to be paid out each financial year.
We calculate the minimum annual payment required as at 1 July each year, based on your account balance.
As part of their response to COVID-19 and ongoing market volatility, the Federal Government reduced the annual pension minimum requirements for the FY19/20, 20/21, 21/22 and 22/23 financial years by 50%.
We’ve applied this 50% reduction when we calculated your minimum annual requirement for the FY22/23
For FY23/24, the minimum requirements are going back to what they were before the temporary reduction.
If you don’t have enough cash in your Cash Hub
If you have insufficient cash in your Cash Hub to meet the pension minimum for FY22/23, you’ll need to sell down some assets to top up available cash before the next pension payment.
You’ll need to do this before Monday 5 June 2023.
What happens if I don’t place a sell-down order before Monday 5 June?
If there isn’t enough cash or if sell orders haven’t been placed to cover your annual pension minimum by Monday 5 June 2023, we’ll sell down assets to top up your available cash from this date. You can view our Product Disclosure Statement (PDS) for more information.
Pension payments above the minimum requirement
As long as you have enough cash in your Cash Hub, we’ll pay your elected pension amount.
If there’s not enough money in your Cash Hub to pay the amount you’ve chosen, we’ll manually change it to the remaining annual pension minimum amount for the year.
Future pension payments in the new financial year will revert to your previous instructions, as long as these meet the minimum pension requirements.