ACCOUNT-BASED PENSION MINIMUM DRAWDOWN FACTORS


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The minimum pension amount as a percentage of account balance is:


Age
Up to 2007/08
2008/09 to 2010/11
2011/12 to 2012/13
2013/14 onwards
Under 65
4%
2%
3%
4%
65 - 74
5%
2.5%
3.75%
5%
75 - 79
6%
3%
4.5%
6%
80 - 84
7%
3.5%
5.25%
7%
85 - 89
9%
4.5%
6.75%
9%
90 - 94
11%
5.5%
8.25%
11%
95 or more
14%
7%
10.5%
14%

Notes:

  • There is no maximum drawdown expect if the pension is a TTR or Market Linked pension
  • The minimum drawdown in the 2008/9, 2009/10 and 2010/11 years was halved in response to the global financial crisis
  • The minimum payment should be pro-rated for pensions starting part-way through a year
  • There is no minimum payment required for pensions started after 1 June
  • Minimum is rounded to nearest ten dollars, but be careful to leave a margin as missing the minimum payment could lead to no tax exempt income claim being allowed

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Email act@bendzulla.com