If you have a tax free superannuation pension in Australia, you must make minimum pension distributions each tax year in order to maintain the tax free status. Between ages 60 and 65, you need to pay out 4% per year.
In 2025-26 I paid out $3,150 a month from my SMSF pension account and $2,000 a month from my Unisuper pension account. The SMSF returned about 12.5% for the year, so that should be the increase in the value of the pension account before taking into account the pension payments I made. I am estimating I need to pay $3,400 a month this year. I won't know for sure till near the end of the financial year, when SuperGuardian have completed the accounts for 2025-26 (the deadline for submitting a tax return is much later for SMSFs than for individuals). I might need to make an extra payment then.
I could reduce the Unisuper payments a little. However, HSBC require me to deposit $2,000 per month in my account to get 2% cashback on tapped payments. I think this tax free $120 or so is worth it (purchases over $100 don't get cashback) for paying out an extra $900 for the year.
In any case, I can still recontribute this money. Because my 30 June 2026 total superannuation balance is less than the new $2.1 million transfer balance cap, I can still make non-concessional contributions this year. I already brought some forward to 2025-26 and so the limit remaining is $65k. I can still make concessional contributions up to age 67. The annual cap is now $32,500. So, I can make $97.5k in super contributions this year.
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