What are minimum annual pension payments?
Account based pensions require a minimum amount to be paid out each financial year.
We calculate the minimum annual payment based on your client’s account balance as of 1 July each year.
If your client doesn't have enough cash in their Cash Account
If your client doesn’t have enough cash in their Cash Account to meet the minimum pension payment for FY24/25, you’ll need to arrange a sell down of some assets to top up their available cash before their next pension payment.
You’ll need to do this before Tuesday 3 June 2025 - otherwise, we’ll sell down assets to top up your client’s available cash from this date. You can view our Product Disclosure Statement (PDS) for Grow Wrap and Voyage for more information.
Pension payments above the minimum requirement
As long as your client has enough cash in their Cash Account, we’ll pay the pension amount they’ve requested.
If there’s not enough money in their Cash Account to pay that amount, we’ll manually change it to the minimum payment that still needs to be made for the year.
Future pension payments in the new financial year will be calculated based on the most recently selected pension payment amount and payment frequency in the previous financial year, with adjustments made for any indexation or fixed rate increases your client has requested. If your client made changes to their selected pension amount throughout the year, please review the latest pension details.
Please review the newly calculated amount straight after our recalculation period to ensure it meets your client’s expectations. This will help avoid the need for an ad hoc payment request after your client receives their first pension payment in the new financial year.
How can I increase or decrease my client's pension payments?
You can view Change pensions payments in Help Centre for more information.