Hi. If you super is in accumulation phase & you have reached pension age do you have to withdraw the minimum 5%, or is that only required in pension phase? Thanks.
If you move your superannuation into an account-based pension (also called a retirement phase account), you are required to withdraw a minimum percentage of your balance each year. The minimum drawdown rates are:
60–64: 4%
65–74: 5%
75–79: 6%
(and it continues increasing with age)
If you choose to keep your super in the accumulation phase, instead of transitioning to a pension:
✅ Your investment earnings are taxed at 15% (rather than being tax-free in retirement phase).
✅ You are not required to take minimum withdrawals (no mandatory drawdowns).
✅ Once you meet a condition of release (e.g., retirement or reaching preservation age), you can withdraw lump sums from your accumulation account as needed.
Go right ahead. If you don't need to draw money from pension phase then why wouldn't you keep your super in accumulation phase & watch your super grow more but taxed at 15%.
Hi. If you super is in accumulation phase & you have reached pension age do you have to withdraw the minimum 5%, or is that only required in pension phase? Thanks.
If you move your superannuation into an account-based pension (also called a retirement phase account), you are required to withdraw a minimum percentage of your balance each year. The minimum drawdown rates are:
60–64: 4%
65–74: 5%
75–79: 6%
(and it continues increasing with age)
If you choose to keep your super in the accumulation phase, instead of transitioning to a pension:
✅ Your investment earnings are taxed at 15% (rather than being tax-free in retirement phase).
✅ You are not required to take minimum withdrawals (no mandatory drawdowns).
✅ Once you meet a condition of release (e.g., retirement or reaching preservation age), you can withdraw lump sums from your accumulation account as needed.
Go right ahead. If you don't need to draw money from pension phase then why wouldn't you keep your super in accumulation phase & watch your super grow more but taxed at 15%.
if you have a current pension account can you add to it up to the available cap
No, your personal cap will increase proportionally - only the amount unused will be counted towards the proportional calculations. Hope that helps