Drawdown

An AvSuper income stream gives you access to your super money over time; you can withdraw or drawdown money in a way that suits your needs. You can choose to have regular payments into your bank account or take less frequent lump sums – you can even have regular payments and take lump sums when you need more money for a holiday, car or other major expense.

It is important to have a well-structured and sustainable strategy for your income stream. Our Stucturing Income Streams in Retirement factsheet provides an overview of a common approach, and you can call us to access personalised advice regarding your own circumstances.

Drawdown Limits

You can drawdown as much of your AvSuper income stream as you wish* – the only limit is the amount of retirement savings you have in your account.

However, you must withdraw a minimum amount of money each financial year by law. This amount is determined according to your age and the balance of your income stream, and we will tell you your minimum drawdown amount each July.

Age Annual payment as a % of account balance
55‑64 4%
65‑74 5%
75‑79 6%
80‑84 7%
85‑89 9%
90‑94 11%
95+ 14%

How to drawdown

If you want to, you can change your payment rate up to four times each year and take out a lump sum as well as regular payments. To change drawdown arrangements, including bank details, use our change of income stream details form, or you can email us, including your name, address & member number.

You can also change which investment options the money is withdrawn from at any time by logging into Member Online or completing our Nominate or switch income stream investment options form.

Drawdown approaches

You can choose which options your money is withdrawn from, using one of the following three approaches.

Pro Rata

You can choose to drawdown from the options in the same proportions as your money is invested in those options. So if you have money invested 30% in Cash, 20% on Balanced Growth and 50% in Growth then your money will be withdrawn in the same proportions.

Priority order

You can choose to have your money withdrawn from the options according to a set order; that is, money will be withdrawn from option 1 until it is at $0 then from option 2 until it reaches $0 and so on. You can readjust your investments periodically so that option 1 does not reach $0 of course.

This is often the option we recommend as withdrawing from the Cash investment option does not realise any losses if markets are performing poorly – please read about Income Stream investment strategies for further explanations.

Percentage

The third option is to allocate a percentage to be withdrawn from each option you are invested in. While similar to matching your mic, this means you can withdraw differently to your investment allocations – for example, you could have money invested 30% in Cash, 20% on Balanced Growth and 50% in Growth but drawdown 80% from Cash, 15% from Growth and 5% from Balanced Growth.

*Note Transition to Retirement Income Streams have a maximum annual withdrawal amount

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