Term Allocated Pensions (TAPs) provide you with a regular income stream over a fixed term. The fixed term is set when you start your TAP.

If your TAP is expiring this financial year, there may be some things you need to do before it ends, which we’ve outlined below.

What you need to do if your TAP is ending

If your holdings are invested, you’ll need to arrange a sell-down of your assets to a cash account to fund any future pension payments for this financial year. You can find more information under ‘Trading’ on how to do this by visiting the Managing your wrap site.

Please note, if a sell-down doesn’t happen before the account closure date, we may need to sell down your holdings. This will be reflected in your recent transaction history.

View the Help Centre article Reports and statements for guidance on how to access your recent statements and reports.

How the pension payments are calculated

For expiring TAPs, we calculate pensions to ensure your account balance is fully paid by the term end date, or in June of the following year, using your account balance on 1 July.

Any account balance movements due to investment performance and/or fees may mean that your final pension payment could be more or less than previous ones.

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Additional information

This information is provided for the use of licensed and accredited brokers and financial advisers only. In no circumstances is it to be used by a potential client for the purposes of making a decision about a financial product or class of products. This information does not take into account any person’s objectives, financial situation or needs. Before making any financial investment decision or a decision about whether to acquire or continue to hold any products mentioned on this page, a person should obtain and review the offer documents relating to that product and also seek independent financial, legal and taxation advice.

Unless stated otherwise, this information has been prepared by Macquarie Bank Limited ABN 46 008 583 542 AFSL and Australian Credit Licence 237502 (MBL).

Any information on Macquarie Wrap products has been prepared by Macquarie Investment Management Limited ABN 66 002 867 003 AFSL 237492 RSEL L0001281 (MIML). The Macquarie Separately Managed Account is issued by Macquarie Investment Services Limited ABN 73 071 745 401 AFSL 237495 (MISL). In deciding whether to acquire or continue to hold a product, a person should consider the PDS, IDPS Guide, or other relevant offer document(s) available on the Macquarie website. Our Target Market Determinations are available at macquarie.com.au/TMD.

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