Account-based pension

This pension or annuity enables recipients to regularly draw down from their superannuation accounts at least a minimum amount based on their ages. The pension or annuity continues until the account balance is reduced to nil or the recipient dies. Upon death, the remaining balance is usually paid to dependants as lump sums, used to buy a pension for a surviving spouse, paid as a reversionary pension, or paid as a lump sum to the deceased’s estate. Account-based pensions could first be offered from July 1, 2007, and replaced allocated pensions and annuities from September 20, 2007.
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