Retirees with an account-based pension or annuity are required to take a minimum amount of income each year from their account.  This is referred to as the minimum pension payment and is calculated as a percentage of the account balance.

The Government reduced the minimum drawdown requirement in March 2020 in response to the COVID 19 pandemic.  This was a temporary reduction that applied over the last few years and finishes on June 30, 2023.

From 1 July 2023 the minimum annual drawdown requirement reverts to the normal rates.  Accordingly, retirees who withdraw the minimum amount each year will need to double their payments for the 2023/24 financial year.  For those retirees who may be moving into a different age bracket, for example from the 80-84 age bracket to 85-89, then the minimum drawdown will increase even more.