Budget 2009 - Some Good Bits

Minimum Pension Limit change continues for 2009/10

The current relief from the requirement to pay out a minimum level of pension income will continue for 2009/10.

In respect of super investors taking account-based and transition to retirement income streams this means rather than paying a minimum of 4% of the pension account balance, only 2% need be paid. 

For super investors who are taking pensions the modified minimum rates for 2009/10 are listed below:

• aged 65 to 74, will be 2.5% (normally 5%)
• aged 75 to 79, will be 3% (normally 6%)
• aged 80 to 84, will be 3.5% (normally 7%)
• aged 85 to 89, will be 4.5% (normally 9%)
• aged 90 to 94, will be 5.5% (normally 11%)
• aged 95 or more, will be 7% (normally 14%).

Super investors taking pensions can take more than the minimum if they so wish. The 10% ceiling still applies for transition to retirement pensions.