Pension Drawdown Relief Continues for 2012/13

The 25% discount to the minimum pension amount which currently applies for account pensions (including transition to retirement pensions and market-linked pensions) will be extended to the 2012/13 financial year.   Previously, the 25% discount only applied to the 2011/12 financial year.

This is a welcome change.  This simply raises the question: why not simply make the 25% discount permanent?

This change was announced on 29 November 2011 and will be implemented by an amendment to the Superannuation Industry (Supervision) Regulations 1994.

Over the Christmas/New Year period we will be updating the pension relief template documents in light of this change.  The updated pension relief template documents will be available from the toolkit on the SUPERCentral Website.