Minimum Account Based Pension payments for the 2020-21 financial year
Each year, a minimum annual pension payment amount is required to be paid from all Account Based Pension’s based on the pension account balance at the end of the previous financial year. There is no maximum amount other than the balance of your pension account, unless it is a Transition to Retirement Income Stream (TRIS) in which case the maximum amount is 10% of the pension account balance at the end of the previous financial year.
| Age | Minimum % withdrawal Excluding 2019/20 and 2020/21 | Reduced rates by 50% for the 2019-20 and 2020-21 income years (%) |
|
Under 65 |
4% |
2% |
|
65–74 |
5% |
2.5% |
|
75–79 |
6% |
3% |
|
80–84 |
7% |
3.5% |
|
85–89 |
9% |
4.5% |
|
90–94 |
11% |
5.5% |
|
95 or more |
14% |
7% |
Note: These withdrawal factors are indicative only. To determine the precise minimum annual payment (especially for market linked income streams), refer to the pro-rating, rounding and other rules in the Superannuation Industry (Supervision) Regulations 1994.
For Account Based Pensions (including a TRIS) commenced part way through the financial year:
- If the Account Based Pension is commenced prior to the 1st June in a financial year, the minimum pension withdrawal is pro-rated based on the number of days remaining in the financial year.
- If the Account Based Pension is commenced after the 1st June in a financial year, there is no minimum pension withdrawal required.