Changes to Minimum Pension Payments

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Certain superannuation pensions and annuities are subject to rules that determine minimum and maximum amounts to be paid in a financial year. Once you start a pension or annuity on or after 1 July 2007, a minimum amount is required to be paid each year. There is no maximum amount other than the balance of your super account, unless it is a transition to retirement pension which is not in the retirement phase, in which case the maximum amount is 10% of the account balance.

COVID-19 (novel coronavirus) – temporarily reducing superannuation minimum payment amounts

For many retirees, the significant losses in financial markets as a result of the COVID-19 crisis are having a negative effect on the account balance of their superannuation pension or annuity.

To assist retirees, the Government has reduced the minimum annual payment required for account-based pensions and annuities, allocated pensions and annuities and market-linked pensions and annuities by 50% in the 2019–20 and the 2020–21 financial years.

Superannuation and annuity providers calculate the minimum annual payment required at 1 July each year, based on the account balance of the member or annuitant. The 50% reduction will apply to the calculated minimum annual payment.


Temporary percentage factor

(2019/20 and 2020/21)

Normal percentage factor
(2013/14 to 2018/19)

Under 65



65 to 74



75 to 79



80 to 84



85 to 89



90 to 94



95 or more



 Please note: These withdrawal factors are indicative only. Please contact us on |PHONE| for more information.

If you have any concerns regarding your minimum pension payments please contact us on |PHONE|

Source: ATO

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