Important things to know about Choice Income
Set up your account in a way that suits you
Your Choice Income account is flexible, so you can change your payment and investment options at any time.
When you join you can use the Smart Default option, or choose your own investment and payment options.
Choosing the Smart Default option
With Smart Default your payments and investment options are pre-selected, modelled and managed by investment experts. This means you’re:
- invested in 12% Cash and 88% Balanced investment option,
- initially receiving at least 6% of your balance each year; and as you get older this minimum amount will change (see table below),
- paid every two weeks, and
- able to change your payment and investment options at any time.
|Smart default option – Percentage of your balance you’ll receive each year|
|Your age on 1 July||Temporary drawdown amounts
(for 2019-2020 and 2020-2021 only)*
|Default drawdown amounts
for 2021-22 financial years onwards†
|80 to 84||6%||7%|
|85 to 89||6%||9%|
|90 to 94||6%||11%|
|95 and over||7%||14%|
*The temporary Smart Default drawdown amounts are for the financial years 2019-20 and 2020-21. They have been reduced in response to the temporary reduction in minimum super drawdown amounts for account based pensions, which were introduced by the Government as part of their economic response to COVID-19 (coronavirus).
†The default minimum drawdown amounts for Smart Default will apply from 1 July 2021, for the financial years 2021-22 onwards.
Choosing your own options
If you choose your own options, you can