The recent 50% reduction in the minimum Account Based Pension withdrawal requirement came to an end on 1 July 2023. This was a temporary measure during and after COVID and was designed to reduce the depletion of ABPs in times of lower investment returns. From 1 July 2023, the minimum withdrawal percentages are reverting to their standard amounts as follows:
| FY 2020-23 (inclusive) | From 1 Jul 2023 | |
| Below 65 | 2.0% | 4.0% |
| 65-74 | 2.5% | 5.0% |
| 75-79 | 3.0% | 6.0% |
| 80-84 | 3.5% | 7.0% |
| 85-89 | 4.5% | 9.0% |
| 90-94 | 5.5% | 11.0% |
| 95+ | 7.0% | 14.0% |
Even though the higher withdrawal is a requirement, it’s not compulsory that you spend it! If you find that you have income surplus to your needs, give us a call and we can discuss your options to ensure you don’t have too much cash sitting idle.