Changes to Minimum Pension Payments
Certain superannuation pensions and annuities are subject to rules that determine minimum and maximum amounts to be paid in a financial year. Once you start a pension or annuity on or after 1 July 2007, a minimum amount is required to be paid each year. There is no maximum amount other than the balance of your super account, unless it is a transition to retirement pension which is not in the retirement phase, in which case the maximum amount is 10% of the account balance.
COVID-19 (novel coronavirus) – temporarily reducing superannuation minimum payment amounts
For many retirees, the significant losses in financial markets as a result of the COVID-19 crisis are having a negative effect on the account balance of their superannuation pension or annuity.
To assist retirees, the Government has reduced the minimum annual payment required for account-based pensions and annuities, allocated pensions and annuities and market-linked pensions and annuities by 50% in the 2019–20 and the 2020–21 financial years.
Superannuation and annuity providers calculate the minimum annual payment required at 1 July each year, based on the account balance of the member or annuitant. The 50% reduction will apply to the calculated minimum annual payment.
|
Age |
Temporary percentage factor (2019/20 and 2020/21) |
Normal percentage factor |
|
Under 65 |
2% |
4% |
|
65 to 74 |
2.5% |
5% |
|
75 to 79 |
3% |
6% |
|
80 to 84 |
3.5% |
7% |
|
85 to 89 |
4.5% |
9% |
|
90 to 94 |
5.5% |
11% |
|
95 or more |
7% |
14% |
Please note: These withdrawal factors are indicative only. Please contact us on Ph: (07) 3026 3600 for more information.
If you have any concerns regarding your minimum pension payments please contact us on Ph: (07) 3026 3600
