What are minimum annual pension payments?

Account based pensions are subject to a minimum amount that needs to be paid out each financial year.

We calculate the minimum annual payment based on your client’s account balance as at 1 July each year.

If your client doesn't have enough cash in their Cash Hub

If your client has insufficient cash in their Cash Hub to meet the minimum pension payment for FY23/24, you’ll need to organise a sell-down of some assets to top up available cash before their next pension payment

You’ll need to do this before Monday 3 June 2024 - otherwise, we’ll sell down assets to top up your client’s available cash from this date. You can view our Product Disclosure Statement (PDS) for more information.

Pension payments above the minimum requirement

As long as your client has enough cash in their Cash Hub, we’ll pay the pension amount they’ve requested.

If there’s not enough money in their Cash Hub to pay that amount, we’ll manually change it to the minimum payment that still needs to be made for the year.

Future pension payments in the new financial year will be calculated based on the most recently selected pension payment amount and payment frequency in the previous financial year, with adjustments made for any indexation or fixed rate increases your client has requested. If your client made changes to their selected pension amount throughout the year, please review the latest pension details.

Please review the newly calculated amount straight after our recalculation period to ensure it meets your client’s expectations. This will avoid the need for an ad hoc payment request after your client receives their first pension payment in the new financial year.

For more information please read Change pension payments on the Macquarie Help Centre.

Contact us

Need help? If you’re an adviser, please contact us via live chat in Adviser Online. If you’re a client, please call

1800 025 063

Talk to us today

To speak to a specialist complete this form and we'll be in touch.

Help and support

Visit our Adviser Help Centre and search our adviser FAQs. 

 

Additional information

This information is provided for the use of licensed and accredited brokers and financial advisers only. In no circumstances is it to be used by a potential client for the purposes of making a decision about a financial product or class of products. This information does not take into account any person’s objectives, financial situation or needs. Before making any financial investment decision or a decision about whether to acquire or continue to hold any products mentioned on this page, a person should obtain and review the offer documents relating to that product and also seek independent financial, legal and taxation advice.

Unless stated otherwise, this information has been prepared by Macquarie Bank Limited ABN 46 008 583 542 AFSL and Australian Credit Licence 237502 (MBL).

Any information on Macquarie Wrap products has been prepared by Macquarie Investment Management Limited ABN 66 002 867 003 AFSL 237492 RSEL L0001281 (MIML). The Macquarie Separately Managed Account is issued by Macquarie Investment Services Limited ABN 73 071 745 401 AFSL 237495 (MISL). In deciding whether to acquire or continue to hold a product, a person should consider the PDS, IDPS Guide, or other relevant offer document(s) available on the Macquarie website. Our Target Market Determinations are available at macquarie.com.au/TMD.

Funds invested on your behalf by MIML, or investments in the SMA other than cash on deposit with MBL, are not deposits with or other liabilities of MBL or any other entity of the Macquarie Group and are subject to investment risk, including possible delays in repayment and loss of income and capital invested. None of MBL, MIML, MISL or any other member of the Macquarie Group guarantees any particular rate of return or the performance of the investments, nor do they guarantee the repayment of capital.

Any information on this page in relation to mortgages has been prepared by Macquarie Securitisation Limited ABN 16 003 297 336 AFSL and Australian Credit Licence 237863 (MSL).