Frank has a few questions on how his superannuation might affect his Age Pension. Several factors need to be considered first.
Does a pension from superannuation count as an income? How much per month can we draw down from superannuation if we are on an Age Pension?
A. Whether your pension from your superannuation is assessed as income or not depends on the type of income stream you have purchased, when it commenced and your age. To confirm your personal situation, you will need to contact Centrelink or seek advice from a financial advisor. You can also find out more from Humanservices.gov.au.
Certain products also require you to withdraw a certain percentage of your account balance (determined by your age) each year, which can be taken monthly, quarterly, half-yearly or annually. You can find details of these percentages from Moneysmart.gov.au.
How much you can draw down from your pension each month if you are on an Age pension will depend on the other income you receive. You can view the current income thresholds here.
It is also worth noting that your Age Pension payment will be assessed under both the asset and income test, and you will be paid the lower amount of the two calculations.