Pension recalculations

In the first half of July every year, we recalculate the pension amounts for the new financial year. During this time, which we also refer to as ‘the pension freeze’ or ‘pension escalation’, you won’t be able to make any changes online to pension payments.

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

What happens when pensions get recalculated?

Pensions are calculated based on your client’s age, account balance as at 1 July, payment frequency and indexation election, explained further in pension indexation and recalculations.

Following the recalculations, you may notice that the amount for your client’s regular pension payments has changed.

We encourage you to make sure your client’s first pension payment in the new financial year is in line with their expectations.

What you need to do

1. Before 1 July 2024

   • Review your client’s pension payment details and make any changes for the remainder of the financial year in Adviser Online before 30 June 2024.
   • Once you’re logged in to Adviser Online
     • Go to clients
     • Select wrap account & administration
     • Select maintain a pension account
     • Input the relevant client details
     • Select amend annual pension details to make any changes.

2. During pension recalculations

   • No changes can be made to pension accounts online during the pension freeze. Any pension payments or lump sum payment requests received during this time will be processed after the pension recalculations have been finalised.
   • If your client’s pension payment is due during ‘the pension freeze’, the pension payment will be processed on time, but the amount will be the same as the preceding pension payment.
3. After the recalculations
   • The pension payments will be adjusted according to your client’s pension indexation option and payment frequency for the new financial year.
   • Review your client’s first pension payment in the new financial year.
   • If your client is getting a pension payment in July, you may only have a few days to review the amount and make changes if required.

We recommend watching this video guide for further information