Temporary reduction in minimum pension payments
To provide Allocated Pension holders with more flexibility in managing their retirement incomes, on 22nd March, the Government announced it is reducing the minimum pension payment requirement for account based pensions by 50% in both 2019-20 and 2020-21.
This change to the rules assists those who do not wish to sell their investment assets while the value of those assets is reduced. The exact timing of this temporary reduction will depend on the passage of the relevant legislation.
The amount by which you can reduce your pension payment will depend on your age as shown below:
| Age | Minimum annual pension payment | NEW minimum annual pension payment for 2019-20 and 2020-21 |
|
Under 65 |
4% |
2% |
|
65-74 |
5% |
2.5% |
|
75-79 |
6% |
3% |
|
80-84 |
7% |
3.5% |
|
85-89 |
9% |
4.5% |
|
90-94 |
11% |
5.5% |
|
95+ |
14% |
7% |
Minimum percentages are calculated on account balance at commencement of pension and at start of each subsequent financial year.
Do you want to take advantage of this?
If you would like to reduce the payments coming from your allocated pension account, please contact me on 9524 7888 and I will arrange it for you.