When the weekend (aka retirement) arrives, you may choose to activate a smartMonday PENSION and start receiving a regular income for you to spend on…whatever floats your boat basically. It’s like getting paid without having to work for it any more. Awesome!
Anyone can open a smartMonday PENSION account if they:
Regular income payments are made from your smartMonday PENSION account until your account balance is exhausted. Just choose the frequency and amount of the income you wish to receive (within the limits set by the Government – see Minimum payments below) and give us the details of the bank account in which you’d like us to deposit your payments.
Note, under government regulations, you cannot add to an account-based pension once it is established. If you need to transfer more super benefits into your pension you will either have to start a second pension account or, commute (i.e. convert) the remaining balance in your current pension account and then set up a new account-based pension.
Income payments from your smartMonday PENSION have a minimum annual limit based on your age and account balance at the start of your pension and, following that, at the start of each financial year.
You can work out the minimum annual drawdown you must take by multiplying the balance in your account when you open your pension account and then at the start of each financial year, by the percentage relevant to your age as shown in the table below. Note, the standard minimum drawdown has been reduced for financial years 2019/20 and 2020/21 as illustrated in the table.
|Age||Standard default minimum % drawdown||Reduced minimum % drawdown for 2019/20 and 2020/21 FYs|
|Under 65 years||4||2|
|65 - 74 years||5||5|
|75 - 79 years||6||3|
|80 - 84 years||7||3.5|
|85 - 89 years||9||4.5|
|90 - 94 years||11||5.5|
|95 + years||14||7|
And, just so you know, lump sum payments from your smartMonday PENSION account (for that cruise, deposit for the kid’s house, reservation on the first commercial flight around the moon, etc) do not count towards meeting the minimum annual payment.
You can withdraw as much as you like above the minimum level of payment – so, think it through, life expectancy has been trending up a lot lately.
These are the standard smartMonday PENSION fees1.
|Investment 2||0.45% p.a.-0.92% p.a. depending on the investment options you choose|
|Membership 4||$94.56 p.a. ($7.88 per month)|
If you aren’t ready for retirement but would like to start working less, once you’ve reached your preservation age, a smartMonday PENSION Transition to Retirement (TRP) might be a good move. A TRP can allow you to supplement your income with regular payments from your super savings while you transition to full retirement. Check it out.
1 Other fees and costs may apply, refer to the smartMonday PENSION Product Disclosure Statement for further information.
2 These fees are not deducted directly from your account. They are included in the unit price of each investment option and reduces your investment return.
3 Deducted monthly directly from your account. Portfolio rebates apply for account balances over $250,000. For more information please see the smartMonday PENSION PDS.
4 This is a dollar-based fee that is deducted monthly from your account. If you have more than one pension account, this fee is deducted from each account. It is indexed annually each 1 July in line with inflation as measured by the change in the Average Weekly Ordinary Time Earnings (AWOTE) index.