Stop Press: Pension minimum drawdown extended

1 Jul 2010

The Government has extended the 50% reduction in the annual minimum pension drawdown required for self funded retirees for the financial year  July 2010 - June 2011.

This relief was first announced 2 years ago in recognition of the decline in account balances many retirees experienced during the downturn in global financial markets.

The Government determines the minimum annual amount based on your age and the value of your account balance as at 1st of July each year. 

While this change is not yet legislated, the reduced minimum will be available to retirees with an allocated pension or term allocated pension account. It impacts those receiving account-based income streams, such as:
• Account-based pensions (those commenced from 1st July 2007)
• Allocated pensions (those commenced pre 1st July 2007)
• Term allocated pensions
• Transition to retirement income streams.

The amount you withdraw depends entirely on your personal cash flow circumstances.  You do not have to take any action if you require your current pension amount to stay the same.

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