Yesterday, the Government announced it will extend the 50% minimum annual payment for account-based pensions for the 2010/11 financial year.

This means, as in the past two years, the 50% minimum annual payments will continue for account-based, allocated and market-linked pensions.

The following table shows the minimum percentages that now apply:

Age	50% Minimum Percentage
Under 65	2%
65 - 74	2.5%
75 - 79	3%
80 - 84	3.5%
85 - 89	4.5%
90 - 94	5.5%
95 and over	7%

Example
John is age 65 and has an account based pension. His account balance on 1 July 2010 is $300,000.

If John had met with his adviser and elected to receive the minimum annual payment, prior to yesterday he would have received $15,000 ($300,000 x 5%).

However now that the 50% minimum annual payment applies, the new minimum annual payment is $7,500 ($300,000 x 2.5%).

If you or someone you know would like to know more about how this announcement impacts their financial future, please do not hesitate to contact us on so that we may discuss any questions you might have.