How a Pension is paid
You have the flexibility to choose to have your pension payments paid to you fortnightly, monthly, quarterly, half-yearly.
You can choose up to two bank accounts held in your name (or held in joint names with another person) for your pension to be paid to by direct deposit.
Pension income payments (excluding fortnightly payments) will be made on the 10th or 25th day of the relevant month. Fortnightly payments will be made every second Thursday. Where the usual payment date falls on a non-business day (within NSW), pension payments will be made on the previous business day.
If you do not make a choice, you will receive your payment on a monthly basis, commencing on the next available date.
Please note that an election for a yearly payment frequency is not available in July, as this payment date occurs before annual payment limits are determined.
You can choose from one of the following pension payment amount options:
|Payment Amount||Pension||Pre-Retirement Pension|
|Minimum||Depends on age, see ‘Minimum pension income payment’ table below|
|Maximum||Not applicable as no maximum applies||10% – see ‘Maximum pension income payment’ below|
|Other selected amount||Must be at least the minimum||Must be within the minimum and maximum limits|
If you do not make a choice, you will receive the applicable minimum level of payment.
You can vary the amount and frequency of your pension payments at any time throughout the year, as long as you remain within the prescribed limits.
The table below shows the percentages that are used to calculate the minimum pension income amount each year:
|Age||Minimum annual payment
(% of account balance)
|95 or over||14%|
There are no maximum payment limits for the Nationwide Super Pension. The Nationwide Super Pre-Retirement Pension has a maximum payment limit of 10% of your balance per financial year.
The minimum and maximum pension income amounts are calculated based on your opening pension account balance and then the withdrawal balance as at 1 July each year, and rounded to the nearest $10.
Your minimum and maximum limits will be recalculated each year, based on your age and withdrawal balance as at 1 July.
If you request a pension payment amount outside of either the minimum or maximum limits, we will adjust your payments, as required.
Bob is age 63 and starts a Pension on 1 July 2017 with $200,000. He wishes to draw the minimum annual payment, which is $200,000 x 4% = $8,000. So Bob can choose to take a minimum payment of $8,000 in 2017/18.
Sally is age 56 and has an existing Pre-Retirement Pension, with a withdrawal balance of $380,000 as at 1 July 2017. She wishes to draw the maximum annual payment, which is $380,000 x 10% = $38,000. So Sally can choose to take a maximum payment of $38,000 in 2017/18.