Whether you're transitioning to retirement or you're already fully retired, your HESTA Income Stream gives you the flexibility to adjust your income within set limits.
An income stream is an account-based pension and is a flexible way to access your super after you retire. One of the great things about our income stream is that it pays you a regular income – tax-free if you’re over 60 – while your super stays invested.
Other benefits are simplicity and flexibility. Your income is paid directly to your bank account at the frequency you choose. You can also set up your online account to manage your income stream account anytime, anywhere.
The government sets minimum amounts you must withdraw from your income stream account based on your age. It’s important to remember that these are the minimum amounts, and if you’re fully retired or over age 65 you can take more than the minimum as suits you and your circumstances (up to 10% for transition to retirement accounts).
In response to COVID-19 (2019-20 through to 2022-23 income years), minimum drawdown rates were temporarily halved. Post-COVID (from 1 July 2023), minimum drawdown rates have gone back to normal, as the table below shows.
| Age | 2013-14 to 2018-19 income years (inclusive) | 2019-20 to 2022-23 income years (inclusive) | 2023-24 income years (onwards) |
|---|---|---|---|
| Under 65 | 4.0% | 2.0% | 4.0% |
| 65-74 | 5.0% | 2.5% | 5.0% |
| 75-79 | 6.0% | 3.0% | 6.0% |
| 80-84 | 7.0% | 3.5% | 7.0% |
| 85-89 | 9.0% | 4.5% | 9.0% |
| 90-94 | 11.0% | 5.5% | 11.0% |
| 95 or more | 14.0% | 7.0% | 14.0% |
Source: Australian Taxation Office (ATO) https://www.ato.gov.au/Rates/Key-superannuation-rates-and-thresholds/?page=4
Learn more about our income streams.
It’s important to note that everyone’s financial circumstances are unique and there is no ‘one size fits all’ approach to structuring your income stream and how much you decide to receive as income.
The rules around pension drawdowns, tax, and the Age Pension are complex. We’re here to help you get the most from your retirement and ensure that your money works for you – here are some resources you may find helpful.
Talk to a member of our team about how your income stream could help supplement the Age Pension.
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