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Date of article: April 2009
Last updated: 5 June 2009

Minimum pension drawdown for 2008-09 halved

The Government has announced a temporary relief to the minimum amount of superannuation pension that a retiree is require to drawdown. The purpose of the relief is said to be in recognition of the current financial circumstances that has now caused a steep reduction in pension account balances.

The reduced minimum will provide retirees with the option of preserving their pension account balance and thereby not crystallising the capital losses.

The minimum amount of superannuation pension that a retiree is required to drawdown for the 2008-09 financial-year is half of the minimum amount.

Age of member Minimum Pension Factor (Ordinary) 2008-09 Minimum Pension Factor
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 and Over 14% 7 %
     

Where half the minimum amount has already been drawn, no further drawdown is required for the remainder of the financial year.

This minimum pension drawdown relief will also apply to transition to retirement pension.

The types of pension covered by this relief are account-based pensions, allocated pensions, and market-linked (term allocated) pensions.

Superannuation Industry (Supervision) Amendment Regulations 2009 (No.2)