Minimum Pension Payments

Tax Law: 23 March 2019

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%.

Please note: The information in this article is provided for general information purposes only and does not constitute legal advice. It is not intended to be comprehensive or to apply to any specific circumstances. You should seek independent legal advice before acting on any information contained in this article.