Minimum Pension Payments

The Prime Minister announced today that the Government will extend for another year the 50% reduction in the required minimum payment amounts that must be made from account-based, allocated and market-linked pensions. The SIS and RSA regulations will be amended as soon as possible in the new financial year.

The minimum amounts had been reduced by 50% for the 2008-09 and 2009-10 financial years - that will now be extended for the 2010-11 financial year. This means, for example, that the minimum annual drawdown for 2010-11 for someone aged 64 years or less will remain at 2%; and for those aged 65-74, will be 2.5%.