Account-Based Pensions & Transition to Retirement Pensions

The minimum pension limit which applies to account-based pensions (and transition to retirement pensions) are not subject to indexation and are unchanged.

The minimum pension limit is simply a percentage of the pension account balance.  The percentage is based on the pensioner’s age at the start of the financial year.  For example, if the pensioner will on 1 July 2008 be under age 65 – the percentage is 4%.  If the pensioner will be 65 or more on 1 July 2008 (but less than 74) then the percentage is 5%.  A higher percentage applies if the pensioner is more than 75 at 1 July 2008.