The government has announced that it will extend for another year the 50 per cent reduction in the required minimum payment amounts that must be made from account-based, allocated and market-linked pensions.

The minimum amounts had been reduced for the 2008 – 09 and 2009 – 10 financial years. This means, for example, that the minimum annual drawdown for 2010 – 11 for someone aged 64 years or less will remain at 2 per cent; and for those aged 65 – 74, will be 2.5 per cent.