You’ve worked hard all your life, and you’ve finally reached the point where you can start to draw down on your superannuation. You may have fully retired, or you could be partaking in a transition to retirement strategy. Either way, you have met the conditions of release, and you are ready to draw down.

One of the requirements of moving all or some of your superannuation into pension phase is that you must drawn down a minimum amount every year. This amount is based upon your two criteria; your age and the size of your balance. It is a pretty simply formula that is set by the ATO:

source: www.ato.gov.au

If you are an SMSF member, the ATO have a great video on their website that explains how the process works when paying a superannuation pension from an SMSF:

Please note: If you have a market-linked income stream, the calculation for the annual minimum pension payments is different. For the calculation method for market-linked income streams, refer to SIS Regulations, the ATO or seek the advice of an expert superannuation Accountant.

If you would like like advice from an expert superannuation accountant on how much you can draw as an SMSF pension, please contact our office on (03) 9999 7200, or you can reach us here.

All information provided in this article is of a general nature only and is not personal financial or accounting advice. Also, changes in legislation may occur frequently. We recommend that our formal advice be obtained before acting on the basis of our information.