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A retirement income account gives you the flexibility to set up regular income payments from your retirement savings. How much and when you get paid each year is entirely up to you. 

Once you retire and move some, or all, your super into your Aware Super retirement income stream, you’ll get paid a regular income from your super. Think of it almost like the salary you received while you were working. 

Key points: 
  

  • With a retirement income account, you can:
  • receive regular income payments from your super into your nominated bank account,
  • make extra cash withdrawals whenever you need to, and
  • choose how much and when you get paid each year. 

Choose how much to pay yourself

You get to choose how much you pay yourself and you can vary this at any time. The only constraint is the Government’s minimum drawdown requirement. Most people can confidently take more than this. 

While you should choose a payment amount to meet your expenses, it’s also a good idea to take into account:

  • your overall super balance,
  • whether you're receiving any Government Age Pension, and
  • any other income or assets you have.


Government minimum withdrawal amounts for 2021-22

The Government sets a minimum amount you need to take out each year. It’s calculated at the start of each financial year and is based on your age and your super balance at that time. 

At the moment the minimum withdrawal limit is 2% of your annual balance if you’re under 65. The Government reduced it from 4% to 2% to help preserve the balances of retirees through COVID-19. 

The reduced minimum withdrawal limits will continue to apply until 30 June 2022. From 1 July 2022 the minimum drawdown rates will return to standard rates.

 

Age at start of retirement income stream (and 1 July each year) Reduced minimum payment limit for 2019-20, 2020-21 and 2021-22 Standard minimum payments limit
Under 65 2% 4%
65-74 2.5% 5%
75-79 3% 6%
80-84 3.5% 7%
85-89 4.5% 9%
90-94 7% 14%
95+ 7% 14%


1 The Government’s temporary minimum withdrawal limit for 2019-20, 2020-21 and 2021-22 started on 25 March 2020 and will end on 30 June 2022.

2 The Government’s standard minimum rates apply from 1 July 2022 for 2022-23 onwards.


Choose how often you get paid

You also have a choice of how often you receive your income payments. You can choose fortnightly, monthly, quarterly, half-yearly or annual payments.

Here’s an example of how it works

Erika is 67 years old. On 1 July 2021, her account-based pension balance was $480,000. Erika’s minimum annual payment is 2.5% (refer to the table above) of her account balance. Erika's required annual minimum for 2021-22 is $12,000, or a monthly payment of $1,000 (paid on the 12th of every month).

This will help you set up a yearly budget to ensure your money will last you throughout your retirement.


How to change your income payment

You can change how much you receive for your regular payments as many times as you like throughout the year. It’s important to get your request in at least three days before the next scheduled payment, so that the change to your income payment is processed in time.  

To make a change: 

  • Go into the Aware Super mobile app and select the tile, ‘Manage pension payments’ 
  • Log in to your account online, and select Withdrawals / Manage payment details, or, 
  • Complete the form Change of income stream details (PDF, 412kb)

Make extra withdrawals if you need extra money

You can also make extra withdrawals if the regular payments that you set up don’t meet your expenses and needs.

There are some things to consider if you do this:
 

  1. There may be tax implications, especially if you’re under 60, and 
  2. How long your want your super to last.  
     

Related documents


Related information

 

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