With an Equip Super Retirement Income or Transition to Retirement Income account, you get to choose how much your regular income payment is, and how often you want to receive it.
How often – you can choose to have your income paid to you on a fortnightly, monthly, quarterly, half-yearly, or just once a year. We’ll make payments directly into your bank account based on the payment frequency you've chosen.
How much – you can also choose the amount you'd like to receive. Just note that minimum and maximum payment amounts apply (these are shown below).
If you have a Retirement Income account, you can also make an additional lump sum withdrawal at any time in addition to your regular income payments. (Note that you generally can’t make lump sum withdrawals from a Transition to Retirement Income account.)
Minimum and maximum payment amounts apply to the income payments you receive from retirement income products. These ‘drawdown rates’ are set by the government and may change from year to year.
For retirement income accounts, a minimum amount must be withdrawn each year, while for transition to retirement income accounts, minimum and maximum rates apply. The rates are shown below.
The minimum drawdown rate is essentially a minimum amount that the government requires you to withdraw from your Retirement Income account each financial year. It’s set as a percentage of your account balance, and it gradually increases as you get older.
We automatically calculate your income payments at 1 July each year, using your balance at that time and the rate that applies to you.
Current drawdown rates.
|Your age at 1 July each year||Minimum drawdown rates from 1 July 2023|
|Up to 64||4%|
|65 to 74||5%|
|75 to 79||6%|
|80 to 84||7%|
|85 to 89||9%|
|90 to 94||11%|
|95 and over||14%|
The minimum income payment you need to receive for the 2023/24 financial year is calculated as 4% of your opening balance when your Transition to Retirement Income starts, and as at each subsequent 1 July. The minimum income payment you must receive is pro-rated if you open your account part way through a financial year, but if you open your account on or after 1 June, you don’t need to receive a payment in the remainder of that financial year.
The maximum income payment you can choose to receive is 10% of your opening balance when your Transition to Retirement Income starts, and as at each subsequent 1 July. If you started your Transition to Retirement Income account during the financial year, your nominated annual income will be pro-rated for the remainder of the financial year. However, if you’ve chosen to receive the maximum amount, the whole 10% will be paid to you in that financial year.
Getting a little support and guidance from the experts can make a big difference when it comes to choosing the right products for your next chapter and helping you make the move to retirement in the way you want to. And our team is here to help.