With a Brighter Super Pension account, you can choose how much regular income you would like to receive*.
The Australian Government sets a minimum amount you must withdraw from your pension account each financial year. This is based on your age and is expressed as a percentage of your account balance. This rate is known as the minimum pension factor.
The minimum is a starting point, but it may not be the right amount for your needs. You can choose to receive more, depending on your circumstances.
How much you draw from your retirement savings is an important part of managing your retirement income and lifestyle. It can affect how much income you have now and how long your super may last.
* A maximum drawdown rate of 10% applies to Transition to Retirement Pension accounts.
How your minimum payment is calculated
Your minimum payment amount is calculated using the minimum pension factor and your account balance. It is first determined when you start your pension and is recalculated on 1 July each year.
To estimate your minimum payment:
- Refer to the table below to find the percentage for your age (your minimum pension factor).
- Apply this percentage to your account balance.
For existing Pension accounts, your minimum payment is recalculated on 1 July each year using your account balance at that time.
If your Pension account was opened after 1 July, the minimum pension payment amount is pro-rated based on the number of days left in the financial year and applied to the opening account balance.
If you open your account in June, there is no minimum payment required for that financial year.
| Age |
Minimum pension factor |
| Under 65 |
4% |
| 65–74 |
5% |
| 75–79 |
6% |
| 80–84 |
7% |
| 85–89 |
9% |
| 90–94 |
11% |
| 95+ |
14% |
Minimum drawdown amounts apply to Allocated Pension, Term Allocated Pension and Transition to Retirement Pension accounts. A maximum drawdown rate of 10% applies to Transition to Retirement Pension accounts.
Choose what works for you
You’re in control of how and when you receive your pension payments, and you can make changes as your needs evolve over time.
You can choose the following for your pension payments:
- Payment frequency, such as fortnightly, monthly, quarterly or yearly.
- Payment amount, subject to government minimum limits.
- Automatic increases in line with the Consumer Price Index (CPI).
- Updates to your payment details if your circumstances change.
If you do not choose a payment frequency or amount when you set up your account, your payments will default to monthly.
If you do not choose a payment amount, your payments will default to the government minimum.
Important: If you have selected the Retire Easy Pension, increasing your pension payment amount will automatically opt you out of the Retire Easy Pension.
Deciding your payment amount
Your minimum payment is the lowest amount you must withdraw each financial year. Depending on your circumstances and retirement goals, choosing a higher payment amount may help you better support the lifestyle and income you want.
When deciding how much to withdraw from your account, there are a range of factors you may wish to consider:
- Your overall super balance
- Your expected living expenses
- Your lifestyle goals and planned spending
- The length of time you want your super to last
- Your eligibility, or expected receipt of, the Government Age Pension
- Any other income or assets you may have.
Some members choose to take only the minimum amount. Others choose to withdraw a higher amount. Everyone’s situation is different, and the right approach will depend on your personal circumstances.
If you would like guidance based on your personal circumstances and future goals, you may wish to seek financial advice. Brighter Super’s team of financial advisers can help you understand your options and make informed decisions.
Find out more about Brighter Super’s advice services and how to book an appointment.
We also have tools and calculators available on our website which can also help you explore different options.
Changing your pension payment amount
You can change your pension payment amount at any time if your needs or circumstances change.
You can update your pension payments in Member Online:
- Log in to your account in Member Online
- Click view payment plan for the Pension account you want to update.
- Click change payment plan on the right-hand side of the screen.
- You can then change your regular pension payment amount and/or your payment frequency.
You can also call us on 1800 444 396 to make the change.
Important: If you are in the Retire Easy Pension, increasing your pension payment amount will automatically opt you out of the Retire Easy Pension.
