2021/22 Pension Payments
If you are receiving a pension from your SMSF your minimum annual pension payment for 2021/22 will be re-calculated upon finalisation of the 2020/21 financial accounts and you will be notified of the relevant amount to withdraw before 30 June 2022.
The minimum annual pension payment is calculated as a percentage of your pension account balance as at 1 July 2021 in accordance with the table below:
|Age as at 1 July 2021||Minimum %|
|65 – 74||5%|
|75 – 79||6%|
|80 – 84||7%|
|85 – 89||9%|
|90 – 94||11%|
|95 and over||14%|
Please Note: A temporary reduction of 50% of the minimum pension drawdown applies for the 2021/22 financial year due to the Covid-19 pandemic.
You must withdraw at least the minimum amount before 30 June 2022. If you fail to do so, the super fund will lose its tax exemption for the income generated by the assets funding your pension.
If you are receiving a Transition to Retirement Income Stream (i.e. you are under 65 years of age and not yet retired), you are only eligible to withdraw a maximum of 10% of your pension account balance as at 1 July 2021. We will notify you of the maximum annual pension payment for 2021/22 if this applies to you.
If you are still eligible to make contributions to your super fund and you intend on making a large contribution sometime during the 2021/22 financial year that is to be converted to a pension, please advise our office so that we can ensure the contribution amount does not exceed your relevant contributions cap, prepare the necessary documents to commence the pension and advise you if you need to withdraw an additional amount from the super fund in order to satisfy the minimum annual pension amount for 2021/22.
Contact our Allan Hall Self-Managed Superannuation team if you would like some help on 02 9981 2300.
General Advice Warning
The information in this brochure is of a general nature only and does not take into account your personal objectives, financial situation or specific needs. We recommend that you consider your own financial position, objectives and requirements and seek advice from an authorised financial adviser before making any financial decisions.
Allan Hall Business Advisers Pty Ltd is a Corporate Authorised Representative of Allan Hall SMSF Advisory Pty Ltd ABN 71 608 966 276 AFSL 485203. Allan Hall Financial Planning Pty Ltd is an Authorised Representative of Consultum Financial Advisers Pty Ltd ABN 65 006 373 995 AFSL 230323.