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Retirement income streams

Account-based minimum drawdowns

Section: 14.4

14.4 Account-based minimum drawdowns

  • When a member starts a superannuation pension or annuity, a minimum amount is required to be paid out to the member each year.
  • There is no maximum amount other than the balance of the account, (unless it is a transition to retirement income stream (TRIS)).
Minimum % of account balance you must withdraw each year
Age of beneficiary Standard percentage factor (from 2023/24) Reduced percentage factor - applied in 2019/20, 2020/21, 2021/22 and 2022/23*
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 or older 14% 7%

*Temporary reduction in minimum drawdowns from 2019/20 to 2022/23. Minimum drawdown requirements for account-based pensions and annuities, allocated pensions and annuities and market-linked pensions and annuities were reduced by 50% for the 2019/20, 2020/21, 2021/22 and 2022/23 income years. This measure was designed to ease pressure on retirees to sell investment assets in a volatile economic climate

This technical resource is intended for the use of financial advisers only. It is current as at the date of publication but may be subject to change. This publication has been prepared without taking into account a potential investor's objectives, financial situation, needs or objectives. Before making a recommendation based on this material, you should consider its appropriateness based on the client's objectives, financial situation and needs. Rainmaker Group is not a registered tax agent under the Tax Agent Services Act 2009. Your client should refer to a registered tax agent before relying on information published herein that may impact their tax obligations, liabilities or entitlements.

Last modified: Thursday, June 29, 2023