What is changing?

The compulsory minimum drawdown is about to revert to the normal minimum pension percentage amounts prescribed in the legislation, we have been subject to a lower compulsory pension over the last few years, called covid minimums, which were introduced as a temporary measure when Covid triggered large volatility in global markets, and were intended to reduce the forced withdrawals of money from account based pensions just to meet the minimum pension requirements especially whilst markets were affected by significant drops.

If you have nominated a pension amount that is already higher than the prescribed minimum , you will not need to do anything.

If you have enjoyed a low pension draw down from your pension account, you may notice that the regular monthly or fortnightly income is suddenly higher from your July payments onwards. You cannot reduce them lower than the minimum percentage.

New minimums