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 on 1 July or commencement date||Minimum % of account balance you must withdraw each year1|
|For 2022/23||From 2023/24 onwards|
|65 to 74||2.5%||5%|
|75 to 79||3%||6%|
|80 to 84||3.5%||7%|
|85 to 89||4.5%
|90 to 94||5.5%||11%|
*The minimum may be subject to change from time to time. For more information go to ato.gov.au
If you’re under 65 you can withdraw between 2%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. This applies to account based pensions and TTR pensions.
² The minimum withdrawal has been reduced by 50% (down to 2%) for the 2022/23 financial year.
³ The maximum annual payment applies to TTR pensions in accumulation (or pre-retirement phase).
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.
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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