Payment factors for market linked income streams

The below contains the payment factors for market-linked income streams contained in Schedule 6 “Payments for market-linked income streams” of the Superannuation Industry (Supervision) Regulations 1994.

Note: These payment factors, specified under section 9BA(5), are given effect for social security purposes by the Social Security (Asset-test Exempt Income Stream (Market-linked) – Payment Factors) (FaCS) Principles 2005.

The following table shows the payment factors for income support recipients according to the product’s remaining term at purchase, or on 1 July each year.

Term remaining (whole years) Payment factor Term remaining (whole years) Payment factor
70 or more 26.00 35 20.00
69 25.91 34 19.70
68 25.82 33 19.39
67 25.72 32 19.07
66 25.62 31 18.74
65 25.52 30 18.39
64 25.41 29 18.04
63 25.30 28 17.67
62 25.19 27 17.29
61 25.07 26 16.89
60 24.94 25 16.48
59 24.82 24 16.06
58 24.69 23 15.62
57 24.55 22 15.17
56 24.41 21 14.70
55 24.26 20 14.21
54 24.11 19 13.71
53 23.96 18 13.19
52 23.80 17 12.65
51 23.63 16 12.09
50 23.46 15 11.52
49 23.28 14 10.92
48 23.09 13 10.30
47 22.90 12 9.66
46 22.70 11 9.00
45 22.50 10 8.32
44 22.28 9 7.61
43 22.06 8 6.87
42 21.83 7 6.11
41 21.60 6 5.33
40 21.36 5 4.52
39 21.10 4 3.67
38 20.84 3 2.80
37 20.57 2 1.90
36 20.29 1 or less 1.00

And as a percentage of the account balance
Payment factors are somewhat meaningless numbers without a reference point.  By expressing the factor as a percentage of the account balance the rate of payment (and depletion) of the pension can be evaluated.

Term remaining (whole years) Payment factor as percentage of account balance Term remaining (whole years) Payment factor as percentage of account balance
70 or more 3.85% 35 5.00%
69 3.86% 34 5.08%
68 3.87% 33 5.16%
67 3.89% 32 5.24%
66 3.90% 31 5.34%
65 3.92% 30 5.44%
64 3.94% 29 5.54%
63 3.95% 28 5.66%
62 3.97% 27 5.78%
61 3.99% 26 5.92%
60 4.01% 25 6.07%
59 4.03% 24 6.23%
58 4.05% 23 6.40%
57 4.07% 22 6.59%
56 4.10% 21 6.80%
55 4.12% 20 7.04%
54 4.15% 19 7.29%
53 4.17% 18 7.58%
52 4.20% 17 7.91%
51 4.23% 16 8.27%
50 4.26% 15 8.68%
49 4.30% 14 9.16%
48 4.33% 13 9.71%
47 4.37% 12 10.35%
46 4.41% 11 11.11%
45 4.44% 10 12.02%
44 4.49% 9 13.14%
43 4.53% 8 14.56%
42 4.58% 7 16.37%
41 4.63% 6 18.76%
40 4.68% 5 22.12%
39 4.74% 4 27.25%
38 4.80% 3 35.71%
37 4.86% 2 52.63%
36 4.93% 1 or less 100.00%

Act reference: SSAct section 9BA(5) Total amount payable in each financial year-general rule

Policy reference: SS Guide 4.9.2.15 Characteristics of Asset-Test Exempt Income Streams Purchased from 20/9/2004 & before 20/09/2007, 4.9.2.30 Income Test Assessment of Asset-Test Exempt Income Streams

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