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Pension payment flexibility

At what frequency can pension payments be made from my/my client's account?

You can select to receive your/your client's pension payment frequency to be either; weekly, fortnightly, monthly, quarterly, semi-annual, or annually. You also can choose the date the first payment is made, and subsequent payments will be received at your/your client selected payment frequency thereafter.

We may process your/your client's pension payment earlier to ensure you/your client receive the payment on, or just before the scheduled payment date. This will usually occur where the scheduled payment date falls on a weekend or public holiday. Although we process pension payments each business day, some payments to building society or credit union accounts may be received by you/your client after the scheduled date. This is usually due to processing timeframes of those institutions. 

How do pension payments affect my minimum cash holding requirement?

The minimum cash requirement may include an amount set aside to fund your/your client's pension payments.

The minimum cash requirement of your pension account is equal to 1% of your/your client's account balance or $500 (whichever is greater) up to a maximum of $5,000, plus where you are receiving:

  • weekly payments from an income stream or pension, the amount equal to four weekly payments; or
  • fortnightly payments from an income stream or pension, the amount equal to two fortnightly payments; or
  • monthly payments from an income stream or pension, the amount equal to one monthly payment; or
  • quarterly payments from an income stream or pension, the amount equal to one quarterly payment.

No additional cash is reserved if you select to receive semi-annual or annual pension payments, although you should ensure you have sufficient cash available to make these payments each time they fall due.

What happens if there is insufficient cash in my account?

You/your client may still be able to receive your payment depending on the scenario.

Scenario 1: You have sufficient liquid assets to cover your pension payment but not enough cash in your cash account.

Liquid assets are generally those that do not have any redemption restrictions. In this scenario, your cash account will temporarily be taken into a negative position to fund your pension payment.  You will receive your pension payment on time and the requisite amount of your liquid assets will be sold down in accordance with your auto sell down profile to bring your cash account back up to the minimum.

Please note that if your account has a negative cash position a fee will be applied.  This fee is equal to the interest rate payable on positive balances in the cash account.

Scenario 2: You have neither sufficient liquid assets to cover your pension payment nor enough cash in your cash account.  

No pension payment will be made and we will notify you, or where you have a financial adviser, we will notify your adviser. You may be able to lodge an online request for an ad-hoc pension payment if sufficient cash subsequently becomes available.

How do I change my pension payment frequency? 

To update your pension details online, log into your Netwealth online account and navigate using the menu Transactions > Pay & Withdraw > Income Stream Payment.

If you do not have online transact access, please speak with your adviser or you may instruct us via form here

Can't find what you need?

Let us help you with your query. You can contact us on 1800 888 223, or email us at contact@netwealth.com.au

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