• Minimum annual payments for super income streams

    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 in which case the maximum amount is 10% of the account balance.

    The minimum payment amounts have been halved for certain pensions and annuities for the 2008–09, 2009–10 and 2010–11 years and reduced by 25% for the 2011–12 and 2012–13 years. The reductions in these years apply only to account-based pensions and annuities (allocated pensions and annuities and market-linked pensions and annuities).

    Table 10: Minimum percentage factor (indicative only) for each age group

    Age

    Minimum % withdrawal for the 2008–09, 2009–10 and 2010–11 income years for certain pensions and annuities

    Minimum % withdrawal for the 2011–12 and 2012–13 income years for certain pensions and annuities

    Minimum % withdrawal (in all other cases)

    Under 65

    2%

    3%

    4%

    65–74

    2.5%

    3.75%

    5%

    75–79

    3%

    4.5%

    6%

    80–84

    3.5%

    5.25%

    7%

    85–89

    4.5%

    6.75%

    9%

    90–94

    5.5%

    8.25%

    11%

    95 or more

    7%

    10.5%

    14%

    Note: these withdrawal factors are indicative only. To determine the precise minimum annual payment (especially for market linked income streams), refer to the pro-rating, rounding and other rules in the Superannuation Industry (Supervision) Regulations 1994.

    Last modified: 07 Sep 2016QC 18123