read
Limits on withdrawals
You can nominate how often and how much you withdraw from your income stream product, provided your payments meet the minimum and maximum limits, set by the federal government.
What’s the difference between regular payments and lump sum withdrawals?
Regular payments provide an ongoing income from your account-based pension, while lump sum withdrawals reduce your balance immediately and are generally only available from a Retirement Income Stream. Understanding the superannuation lump sum withdrawal rules can help you plan your income stream effectively and avoid unexpected tax implications.
When are pension payments made?
You can choose to receive your payments twice-monthly, monthly, quarterly, half-yearly or yearly. Payments are generally made on the 15th day of the month or the previous business day where the 15th falls on a weekend or public holiday.
Your payment frequency will default to an annual payment in June if you do not make a choice.
When do pension payments end?
Payments continue until your account reaches zero. How long your payments last will depend on a number of factors including:
- How much you transfer into your income stream account
- The frequency and amount of your payments and withdrawals
- Investment earnings on your account balance (positive or negative)
- Any lump sum withdrawals (if you have a Retirement Income Stream)
| Age | Minimum pension drawdown rates |
| 55-64 | 4% |
| 65-74 | 5% |
| 75-79 | 6% |
| 80-84 | 7% |
| 85-89 | 9% |
| 90-94 | 11% |
| 95+ | 14% |
Minimum limits
The minimum payment amounts required to be paid during the financial year, are set out in the table opposite. These percentages are based on your age and your account balance at the end of the financial year.
You can learn more about the minimum super drawdown rates and super withdrawal requirements in the Income Streams Product Disclosure Statement (PDS).
Maximum limits
A maximum withdrawal limit of 10% applies to a transition to retirement (TTR) income stream. Maximum payment limits do not apply to a retirement income stream.
Understanding the superannuation drawdown rules helps ensure you stay within these limits and continue to receive a steady retirement income.
Lump sum withdrawals
If you have a retirement income stream you can make lump sum withdrawals. Contact us to arrange a withdrawal or log into your MemberOnline account and apply for up to $10,000 online. Please note, there may be tax implications on lump sum withdrawals. For more information see the PDS - Income Streams. Consider obtaining independent financial advice or speaking to one of our super specialists before you make a decision about opening an income stream account.
The superannuation lump sum withdrawal rules vary depending on your age, tax components and whether you have reached your preservation age. It’s important to consider how withdrawals may affect your overall retirement savings.
The above applies to Retirement Income Streams only. Lump sum withdrawals cannot be taken from Transition to Retirement Income Streams.For guidance, visit Prime Super’s Retirement page.
How much of a lump sum withdrawal is tax-free?
The tax paid on the amount you withdraw depends on factors such as your age and whether your super has a taxable or tax-free component. The Prime Super PDS provides useful information to help, but you can also contact us on 1800 675 839 for more information on the tax (if any) that you may pay.
Talk to someone in the know
Our super specialists are here to make super simple. Whether you’ve got questions or big plans, we’re ready to help. Book a chat below and get the answers you need.