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Minimum pension payments

CVW Accounting minimum pension payments

What are the minimum pension draw-down amounts?

Minimum pension draw-down amounts apply to account-based annuities and pensions as well as allocated annuities and pensions. Another is market-linked annuities and pensions.

It’s important that at least the minimum pension amount be paid each financial year for all pension members otherwise the superannuation fund can miss out on certain tax benefits.

Furthermore, minimum pension drawdowns changed for certain pensions and annuities for the 2012/2013 financial year.

Minimum payment amounts for account based, allocated and market linked (term allocated) pensions have been reduced by 25% for 2011/2012 and 2012/2013.

Refer to the chart below for details;

Age Minimum % withdrawal for the 2008–09, 2009–10 and 2010–11 income years for certain pensions and annuities Minimum % withdrawal for the 2011–12 and 2012–13 income years for certain pensions and annuities  

Minimum % withdrawal (in all other cases)

 

Under 65 2% 3% 4%
65–74 2.50% 3.75% 5%
75–79 3% 4.50% 6%
80–84 3.50% 5.25% 7%
85–89 4.50% 6.75% 9%
90–94 5.50% 8.25% 11%
95 or more 7% 10.50% 14%

SOURCE: ATO

If you have questions contact CVW Accounting.

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