Choose what's right for you

Account-based pensions offer flexibility and choice. This page outlines the payment options available to you as part of the NGS Income account.

Did you know?

Did you know that if your transition to retirement (TTR) account starts part way through a financial year, you can still choose to be paid up to the maximum payment amount of 10% of your opening balance for that financial year?

If you choose this option and, for example, you have only one transition to retirement payment due before the end of the current financial year, you can receive the full 10% of your opening balance in that payment.

When completing the application form within the Transition to retirement guide, you can specify whether you would like your payments calculated this way for the first financial year. Of course, your account balance will reduce faster if you choose this option.

Determining the amount of your payment

You must take at least the minimum level set out by law. For the Income account, there is no maximum limit however, a Transition to retirement account has a maximum drawdown limit of 10%. The minimum level depends on your age and account balance, so it may change every year. We will calculate your minimum payment level at the commencement date of your account, and will apportion it for the remaining days of the financial year unless you request otherwise. Every year, we will recalculate your minimum payment amount based on the value of your account at each 1 July.

Changing the amount of your payments

You can change your payment amount or frequency at any time, provided it is at least the minimum limit for the year (and not more than the maximum limit if you have a transition to retirement account). Simply complete a Request to vary your pension payment form and return it to NGS Super.

On 1 July each year, your online account details will be updated to record your new minimum payment amount for the new financial year. You can check these details via your Member Online account at www.ngssuper.com.au/login. Once logged in, go to the withdrawal tab then select ‘Your withdrawal details’ from the drop-down menu.

Optional automatic annual increase

Where indicated, you have the option for your nominated annual payment amount to automatically increase at 1 July each year. The annual increase can be either a percentage nominated by you or the change in the Consumer Price Index (CPI). The CPI rate will be sourced from the Australian Bureau of Statistics using the 6401.0 Consumer Price Index, Australia, March quarter to March quarter, All Groups value each year.

Choosing the timing of your payments

You can request to receive your payments fortnightly, monthly, quarterly, six-monthly or annually. Excluding fortnightly, payments are made on the 15th of the month.

Other than for fortnightly payments, we must receive your completed NGS Income account application form (including any transfers from other funds required as part of your request) by the 25th day of the month prior to when you want your payments to commence, otherwise your payments will commence on the first available pay date after your account has been established.

Where can you have your payment made?

Payments are made electronically to your nominated Australian bank account or credit union account and are made in Australian dollars. You can nominate only one account per member and you can change your nominated account by completing a Request to vary your pension payment form.

Lump sum withdrawals

You can make a lump sum withdrawal from your Income account at any time provided it is not a TTR account.

TTR accounts cannot access lump sum payments with the exception of any unrestricted non-preserved portion of the balance (if any). If you are over age 60, any lump sum withdrawal will be tax free.

If you have reached your preservation age, you may be liable for tax on your lump sum withdrawal and the tax-free amount (if any) of your Income account may be affected. A payment summary will be provided and can be included with your tax return if required.

To make a lump sum withdrawal, complete and sign a Request for pension withdrawal form, specifying the amount you want to withdraw and mail it to NGS Super along with a certified copy of identification.

How long will your account based pension last?

Your Income account will continue to be paid until your account balance is reduced to zero. As your account balance is not guaranteed, it is not possible to predict exactly how long your account will last. The length of time your account will last depends on:

  • the amount you initially invest to commence your Income account
  • your net investment earnings after investment management fees have been deducted
  • administration fees and charges that are deducted
  • the amount of your payments and any lump sums that you withdraw each year (including any applicable tax if you are under age 60).

If your account balance reduces to $2,000 or less, we may choose to pay out your account balance as a lump sum and close your account.

Calculating your payment amount

HOW MUCH INCOME WILL YOU RECEIVE?

The amount of payment you receive in any financial year (1 July to 30 June) must be at or above the legislated minimum. NGS Super will calculate your minimum amount at 1 July each year and inform you accordingly.

Table 1 shows the minimum percentages that apply for the Income account, which must be withdrawn from your account each year. The maximum 10% of your account balance each year applies for transition to retirement accounts only, but this ceases to apply to your account if you satisfy a ‘condition of release’ (for example, you retire permanently when have reached your preservation age (generally 57-59 years), terminate employment after age 60 or reach age 65). To notify us that you have met a condition of release, you should complete a Change pension details advice form.

Age1 Minimum percentage of account balance2
Under 65 4
65 – 74 5
75 – 79 6
80 – 84 7
85 – 89 9
90 – 94 11
95 or more 14


1 As at 1 July in the relevant financial year or at commencement of your Income account if after 1 July.
2 Where commencement is after 1 July, the minimum is proportional to the number of days remaining in that financial year.