Minimum Pension Drawdowns for 2011–12

The minimum annual payment amounts for pensions and annuities will be reduced by 25% for 2011–12 and will return to normal in 2012–13. In this respect, the Government will begin to phase out the 50% pension drawdown relief that has been provided for 2008–09, 2009–10 and 2010–11 financial years.

Reducing the minimum payment amounts by 25% for account-based, allocated and market linked (term allocated) pensions from 1 July 2011 seeks to provide some assistance to holders of these products to recoup capital losses incurred as a result of the global financial crisis