Minimum pension drawdown – reduced amounts to continue

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.