50% reduction of minimum pension payment for both 2020 and 2021 financial years

The minimum payment requirement for the following pensions in your SMSF has been halved by the Governments on 22/03/2020.

• account based pensions
• allocated pensions
• market linked pensions

This applies for both 2019/2020 and 2020/2021 financial years.

The reduced rates based on the age of the SMSF member are as follows:

under 65:  2%

65-74: 2.5%

75-79: 3%

80-84: 3.5%

85-89: 4.5%

90-94: 5.5%

95 plus: 7%

If you have already taken more than the reduced minimum payment, you can stop the drawn-down now.  You may return some fund in the form of the member contribution if you meet the contribution rules.