Minimum Pension Drawdown: Rules & Strategies Explained

The minimum pension withdrawal is equal to your 1 July pension balance, multiplied by the pension factor associated with your age, as shown in the table above. The minimum pension factor ranges from 4% to 14%, depending on your age. The minimum pension withdrawal …

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Minimum Pension Drawdown: Rules & Strategies Explained

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FAQs about Minimum Pension Drawdown: Rules & Strategies Explained Coupon?

What is a minimum pension drawdown?

The minimum pension drawdown is a calculated amount that must be drawn down each financial year by a retiree. This article explains all of the pension drawdown rules, the minimum drawdown rates based on age, as well as general drawdown advice. What Is the Minimum Pension Drawdown? ...

What is a pension drawdown strategy?

The most common account based pension drawdown strategy is to draw down only the minimum required pension income each year and then use bank savings, personal investments or other sources of income to cover additional income requirements. ...

What are Australia's minimum pension drawdown rates?

This means retirees who may otherwise be forced to sell assets into a falling market to fund their minimum pension drawdown can avoid locking in investment losses. In normal times, Australia’s minimum pension drawdown rates begin at 4% (temporarily halved to 2%) for retirees aged under 65 and rise gradually as you age to 14% (temporarily 7%). ...

What is the minimum pension withdrawal?

How do I calculate my pension drawdown?

Your pension balance is multiplied by your pension factor to determine your minimum pension drawdown each financial year. Each pension, whether it be an account based pension or a transition to retirement pension, has both minimum and maximum income thresholds. ...

How much a pension should I draw down a year?

Each financial year, you are required to drawdown a pension between the minimum and maximum amount (inclusive). For a transition to retirement pension, the minimum threshold is 4% and the maximum is 10% each financial year and the calculation is performed on 1 July of each financial year that the pension is in existence. ...