Your HESTA Super Income Stream is paid into your nominated Australian bank, building society or credit union account.* Payments cannot be made by cheque.
Your nominated account must be held either in your name or, if the nominated account is held jointly, you must be one of the account holders.
You can choose how often to have your payments made (fortnightly, monthly, quarterly, half yearly or yearly).
If you have more than one investment option you can choose:
-
the proportion of your payment to be drawn from each option
-
the order in which your payments are to be drawn from each option, and/or
- payments in proportion to the balance in each option at time of payment.
If you don’t choose a payment option, payment will be in the same proportion as your initial investment allocation.
Your payment nomination will remain in place until you advise us in writing to change it. You can use the HESTA Super Income Stream Change of income payment amount and frequency form to alter the proportion, order or frequency of your payments.
*Note: the institution may charge you a fee for this service.
Minimum annual income payment reduction
In recent years, the Federal Government has temporarily relaxed the minimum drawdown rules in response to changes in global financial markets.
For the 2011-12 financial year, the standard minimum drawdown amount has been reduced by 25%. However, the Government has indicated that the standard minimum will apply from 1 July 2012.
The table below shows the minimum percentage of your account balance that you must draw down each year.
|
Age
|
Minimum percentage for 2011-12 financial year
|
Standard minimum percentage
|
|
Under 65
|
3%
|
4%
|
|
65-74
|
3.75%
|
5%
|
|
75-79
|
4.5%
|
6%
|
|
80-84
|
5.25%
|
7%
|
|
85-89
|
6.75%
|
9%
|
|
90-94
|
8.25%
|
11%
|
|
95 or over
|
10.5%
|
14%
|
If you’re fully retired, this is the only restriction on the amount of income you can draw from your super income stream (subject to the available balance).
Current HESTA Super Income Stream members can download the HESTA Super Income Stream Change of income payment amount and frequency form to change their payment options.
If you’re transitioning to retirement (TTR): additional restrictions
If you’re transitioning to retirement (TTR) under the Government’s TTR rules, your payments are also subject a maximum annual income payment limit. This is calculated in a similar way to the minimum annual income payment limit, except that the percentage is 10% of your account balance, applicable prior to age 65.
Read our Super Income Stream Product Disclosure Statement for full details.