Allocated Pension Budget Changes
Earlier this year, the government reduced that minimum amount that had to be withdrawn from allocated pensions for the 2008-09 year. The changes halved the minimum withdrawal amount which effectively meant that recipients were able to cease pension payments if they choose, for the remainder of the financial year. .
In the recent budget the Treasurer announced that this concession will be extended and the minimum payment amounts for account-based pensions will be halved for 2009-2010. The purpose being to give retirees an opportunity to recoup losses that have occurred from the stock market downturn..
The minimum percentage for 2009-2010 which will be calculated on the 1 July 2009 balance, will be as follows.
|
Under age 65 |
2% |
|
65-74 |
2.5% |
|
75-79 |
3% |
|
80-84 |
3.5% |
|
85-89 |
4.5% |
|
90-94 |
5.5% |
|
Age 95 or more |
7% |
Allocated and Account Based pensioners will be advised of this when their fund writes to them, normally in June each year. Recipients can then choose the level of income that suits them.
POSTED: 25-May-2009