Account Based PEnsion minimums

Written by Troy Young

Account Based Pension Minimums, legislative changes as of July 1, 2023.

Account based pension ‘minimums’ are going back to the legislated minimums. An account-based pension offers regular, flexible and tax-effective income from your superannuation.

In normal times, someone aged 60 to 65 must take out a minimum of 4% of their account based pension. For example, 65-75 the minimum is 5% and 75-80 is 6% and so on.

When Covid hit and the share market fell, they reduced these minimums to half, i.e. 60-65 fell from 4% to 2%.

These ‘reduced’ minimums have stayed with us until now and will revert to normal as at 01 July 2023. You can arrange for monthly, quarterly, half-yearly or annual payments. If you have any questions, please reach out to Troy or our team at Harbour Wealth Management, we are here to help you.

Minimum amount of money to withdraw

To help manage the financial impact of COVID-19, the Government temporarily reduced superannuation minimum drawdown rates for account-based pensions by 50 per cent for the 2019-20, 2020-21, 2021-22 and 2022-23 financial years.

For the 2023-24 financial year, the minimum draw down rate is back to where it was before COVID-19. 

If you would like to arrange a time to speak with Troy Young for more information on how we can help, please contact our office on 02 6651 2000, or at info@harbourwealth.com.au.