I’m 62 and receive the minimum income from a superannuation pension investment. I’ve heard the minimum has increased. Do I need to do anything and what options do I have if I don’t need the extra income?

Hi Kim.

The minimum income that must be received from a superannuation pension at different ages has returned (from 1 July this year) to levels applying before the Global Financial Crisis.

Based on your age, the minimum amount is now 4% of your account balance on 1 July.

Many pension providers, including MLC, have automatically increased the income payments for investors who have elected to receive the minimum, or have specified a dollar amount that’s less than 4% of their current account balance.

If you don’t need the extra money to meet your living expenses, you could invest it outside super, where earnings would be taxable at your marginal rate.

Or, you could consider contributing the income back into super, where tax concessions may be available.

To make super contributions, you must be under 65, or if you are aged 65 or over, you must meet a ‘work test’.

The best option will depend on your needs and circumstances and we recommend you review your situation. Feel free to contact us on |PHONE| to discuss your options before making your decision.