Your Pension Account options
You have choices when it comes to your pension account:
- Regular income payments: With a legalsuper account-based pension, you can receive regular income payments while your investments grow.
- Access to your super: A legalsuper account-based pension also allows you to withdraw lump sums when you need.
- Guarantee your regular income: Ensure a guaranteed regular income for your chosen term between 1-40 years or for life, regardless of how investment markets perform with a legalsuper Guaranteed Income account.
It's important to note that your accounts are subject to the ATO's transfer balance cap, which is personalised to your situation.
What is a transfer balance cap?
It is a lifetime limit on the amount you can transfer into one or more retirement phase accounts. It includes the total amount across all your superannuation accounts, including pension accounts, other super funds, and SMSFs. To calculate your personal transfer balance cap, visit the ATO webpage or consult your financial adviser.
Want to retire but keep investing?
With a legalsuper account-based pension, your money remains fully invested and you benefit from future investment returns. With these investments, you choose how to draw down your pension payments. Either by default where payments are paid proportionately and you specify a drawdown split based on your investment profile selection. Or you nominate the order of investment options you would like your pension payment paid from.
With a DIO, you control your investments
A Direct Investment Option (DIO) allows you to invest however you want, like a self-managed super fund. You can buy and sell investments, track performance, and access comprehensive market research. With a DIO, you can invest in shares listed on the S&P/ASX300, a range of Exchange Traded Funds (ETFs), a range of listed investment companies (LICs), and/or Term Deposits. It's your super, so it's your choice. The benefits of a DIO:
Control & customisation
Choose how your money is invested.
Cost savings
A DIO is often more cost-effective than managing an SMSF.
Time efficiency
We handle the admin, compliance, and reporting on your behalf.
It's essential to know your drawdown limits
From 1 July 2023, your annual pension payments must be at least the minimum limit set by the Federal Government. Your age, annual pension account balance, and the Government's minimum payment percentage determine the limit that applies to your situation.
The table below shows the Government's minimum percentage factor for certain pensions and annuities (indicative only) for each age group. More detailed information about minimum drawdowns can be found on the ATO website.
| Age at 1 July each year |
Standard minimum drawdown rates from July 2023 |
| Preservation age to 64 | 4% |
| 65-74 | 5% |
| 75-79 | 6% |
| 80-84 | 7% |
| 85-89 | 9% |
| 90-94 | 11% |
| 95 or older | 14% |
