Pension drawdown requirements
There are different requirements for what you can withdraw from both account based and transition to retirement pensions.
Account based pension
Depending on your age, there is a minimum amount you must withdraw as a pension payment from an account based pension each financial year.
| Age | Minimum % of account balance you must withdraw each year1 | |
|---|---|---|
| For 2020/21 | From 2021/22 onwards | |
| 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+ | 7% |
14% |
Transition to retirement (TTR) pension
If you’re under 65 you can withdraw between 4%² and 10%³ of your balance each financial year1.
1. A minimum annual payment does not need to be made where the income stream is commenced from 1 June to 30 June. A pro-rata minimum payment is required if it is commenced before 1 June.
² The minimum withdrawal has been reduced by 50% (down to 2%) for the 2020/21 financial year, but will return to 4% from 1 July 2021 onwards.
³ The maximum annual payment applies to TTR pensions in accumulation (or pre-retirement phase).
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General advice and information only
Any advice and information on this website is general only, and has been prepared without taking into account your particular circumstances and needs. Before acting on any advice on this website you should assess or seek advice on whether it is appropriate for your needs, financial situation and investment objectives.
Tax disclaimer
Any general tax information on this website is intended as a guide only and is based on our general understanding of taxation laws. It is not intended to be a substitute for specialised taxation advice or an assessment of your liabilities, obligations or claim entitlements that arise, or could arise, under taxation law, and we recommend you consult with a registered tax agent.
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