Minimum
withdrawal limits which apply to account based pensions
The following table
shows the minimum annual income stream payments for each age group.
|
Age
|
Minimum
withdrawal as a % of the account balance at the start of the financial year
|
|
Under 65*
|
4%
|
|
65 to 74
|
5%
|
|
75 to 79
|
6%
|
|
80 to 84
|
7%
|
|
85 to 89
|
9%
|
|
90 to 94
|
11%
|
|
95 or more
|
14%
|
*Also applies to transition to retirement income streams.
The benefits you
receive from an income stream after you turn 60 are tax free if they are paid
from a taxed source. Generally, there are no limits on the maximum amount that
can be withdrawn each year, except under transition to retirement rules where
the maximum which can be withdrawn is 10% of the account balance at the start
of the financial year.
NEWS FLASH Minimum
amounts reduced to 50% for 2008 09 Year
Treasurer Wayne Swan and Senator Nick Sherry, Minister for
Superannuation and Corporate Law, today announced relief from minimum
account based pension draw down requirements.
The measure responds to concerns that meeting the minimum
draw down amount in 2008 09 will mean having to sell investments assets and
realise losses in a depressed market.
"The Government recognises that the significant
downturn in global financial markets has had a negative effect on retirees'
superannuation capital in account-based pensions," the Treasurer said.
"In response to these legitimate concerns, the
Government will suspend the minimum drawdown requirement for account-based
pensions for the second half of 2008 09," Minister Sherry said.
"This will occur through a 50 per cent reduction in
the minimum payment amount for 2008 09," Minister Sherry said.
 The temporary relief also addresses the concern that the
minimum draw down requirement was set based on asset values as at 1 July 2008,
when equity values were higher.
For those people who have already taken half of the current
minimum payment for 2008 09, the annual nature of the minimum payment rules
means that a further payment will not be required until the end of the 2009 10
year.
Click here to read the full
announcement.
For Accountants and Advisors
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