Changes to minimum drawdown rates for pension accounts
When you have a Pension account, every financial year you need to withdraw a minimum amount. The amount is set by the government, based on your age and increases as you get older.
The government has applied reduced minimum drawdown rates for all account-based pensions, up to 30 June 2023.
However, from 1 July 2023, the government's standard minimum drawdown rates, will apply to all account-based pensions.
| Age at 1 July each year | Temporary minimum drawndown rates end 30 June 2023 | Standard minimum drawdown rates from 1 July 2023 |
|---|---|---|
| Preservation age to 64 | 2% | 4% |
| 65-74 | 2.5% | 5% |
| 75-79 | 3% | 6% |
| 80-84 | 3.5% | 7% |
| 85-89 | 4.5% | 9% |
| 90-94 | 5.55% | 11% |
| 95 and over | 7% | 14% |
The minimum pension drawdown rate is the amount you’re required to withdraw from your pension retirement or transition to retirement account annually.
You can calculate it as a percentage of your starting balance on from1 July of the current financial year. The percentage applied depends on your age and increase as you enter higher age brackets.
If you have any questions,
email us or phone our friendly team on
02 9899 3044.
