Mentor Financial Services


Account Based Pensions

The most popular Pension income stream is called an Account Based Pension which was previously called an Allocated Pension. It is a retirement income stream which provides payments until the death of the recipient, or the account balance runs out. Payments may comprise of both the original capital invested and the net interest earned on that capital. Account based pensions are not taxed on either the growth or the income generated by the investment if you are retired and aged over 60.

Account based pensions require at least one payment to be made each year. There is no maximum payment that must be made, in essence a recipient could withdraw the total investment as long as they have satisfied a condition of release. There is a minimum payment that must be made based as a percentage of the funds invested and your age.

Minimum percentage of the total balance that must be withdrawn:

Age Percent
55 - 64 4%
65 - 74 5%
75 - 79 6%
80 - 84 7%
85 - 89 9%
90 - 94 11%
95 + 14%

On the death of the recipient, the pension may only be transferred to a dependant or cashed out as a lump sum to the pensioner's estate (Tax implications may apply).

Financial Services - Retirement Planning

Corporate Brochure

Click here to download our
Corporate brochure