When you start a Transition to Retirement income stream (a pension while you still work) there are certain minimum amounts to withdraw. The maximum amount is 10% of the account balance.
With the GFC these minimum percentages was lowered. This enabled Members to preserve more capital in the SMSF. These minimum percentages are set out below:
|
Age of recipient |
Percentage Factor |
Percentage Factor |
Percentage Factor |
|
2010/11 |
2011/12 and 2012/13 |
2013/14 onwards |
|
|
Under 65 |
2% |
3% |
4% |
|
65 – 74 |
2.50% |
3.75% |
5% |
|
75 – 79 |
3.00% |
4.50% |
6% |
|
80 – 84 |
3.50% |
5.25% |
7% |
|
85 – 89 |
4.50% |
6.75% |
9% |
|
90 – 94 |
5.50% |
8.25% |
11% |
|
95 or more |
7.00% |
10.50% |
14% |
Notes:
1. 2009/10 minimum pension % your was the same as 2010/11
2. The last column starting with the 4% minimum is the normal percentages that apply for minimum pension draw down
3. Minimum amount calculated on 1 July each year for the transition to retirement regular payment
4. In the first year of the account-based income stream, work out the minimum payment pro rata on effective days in the year
5. Minimum amount to be rounded to nearest $10
6. These minimum amounts are set out in the Superannuation Legislation (click on the link for the legislation)
To start a Pension or Transition to Retirement, Trustees need to minute this decision. Use this template of Trustee Minutes to document your decision. There are also lots more documents available for download from our FREE DOWNLOADS section.
To read more on Pension payments from an SMSF, read the ATO booklet here: