Income options

Your income options

A Transition to Retirement Pension converts your super into a regular income, which you can adapt to suit your needs. This means you can:

  • Choose how much income you’re paid, within limits set by the Australian Government
  • Get paid monthly, quarterly or yearly into a bank account in your name
  • Choose to have your annual pension payment automatically increased (indexed) each year in line with the Perth Consumer Index (CPI) or by a set percentage, to a maximum of 5%
  • Change how much you’re paid and how often by completing a payment variation form

How to choose an income that suits your needs

When you’re deciding the best way to receive your pension payments, it can help to think about:

  • Your lifestyle and expenses
  • Any other income you receive from other sources
  • How much your partner earns (if you have a partner earning an income)
  • How long you might need your pension to last
  • Your minimum and maximum annual pension (see the section below)

Learn more about the benefits of our Transition to Retirement Pension and if it’s right for you.

You might also want to ask us about our Retirement Options Service or seek personal financial advice for your situation.

You need to withdraw a minimum amount every financial year

The Australian Government has set a minimum annual pension limit. This is the percentage of your pension account balance that we need to pay you each financial year.

Your minimum annual pension rate depends on your age:

Minimum annual pension rate

Age

Percent of account balance
– default rate (%)

Under 65

4%

65-74

5%

75-79

6%

80-84

7%

85-89

9%

90-94

11%

95 and above

14%

Each year, we multiply your pension account balance on 1 July by your minimum annual pension rate. We’ll let you know what your new minimum annual pension is, and if we need to change your payments to ensure you receive at least this amount.

During your first year, we use your account balance on the date you joined and we work out your minimum pension on a pro-rata basis. If you open an account in June, you can also choose to receive your first payment after 1 July.

Use our example to work out your minimum annual pension

Chris is 60 years old and has $200,000 to invest in a Transition to Retirement Pension on 1 July 2023. We’ve worked out his minimum annual pension below. If you print this page, you can add your own details in the space provided.

Work out your minimum annual pension income

Chris’ details

Chris

Your details

You

Account balance (A)

$200,000

Your account balance (A)

 

Chris’ age (years) (B)

60

Your age (years) (B)

 

Minimum annual pension payment (C)
(from table above)

4%

Your minimum annual pension payment (C)
(from table above)

 

Chris’ minimum annual pension income

Chris must receive a pension income of at least this amount for this financial year

$200,000 x 4% = $8,000

Your minimum pension amount (A multiplied by C)

You must receive a pension income of at least this amount for this financial year

 

A maximum limit also applies for your pension payments

With a Transition to Retirement Pension you can select a maximum payment of 10% of your account balance as calculated at the start of each financial year.

Use our example to work out your maximum annual pension

Work out your maximum annual pension income

Chris’ details

Chris

Your details

You

Account balance

$200,000

Your account balance

 

Chris’ maximum annual pension income

$200,000 x 10% = $20,000

Your maximum pension amount (account balance multiplied by 10%)

 

Ready to set up your regular pension payments?

Find out How to open a Transition to Retirement Pension account.

Page last updated 01 October 2025