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Minimum Drawdown Rules by Age
How much you must withdraw from your super pension each year.
If you have an account-based pension (or a TRIS that's converted to retirement phase), the government requires you to withdraw a minimum percentage of your balance each year. This ensures super is actually used for retirement income — not just accumulated indefinitely.
The minimum drawdown rate increases as you get older, reflecting the expectation that you'll be drawing down your capital over your retirement years.
🔑 Key Points About Minimum Drawdowns
- The minimum is calculated as a percentage of your account balance on 1 July (or when you start the pension)
- You must withdraw at least this amount by 30 June each year
- There's no maximum — you can withdraw more if you need to
- If you start mid-year, the minimum is pro-rated
- The rate depends on your age at 1 July (or pension start date)
Minimum Drawdown Rates for
| Your Age | Minimum Drawdown Rate | Example ($500,000 balance) |
|---|---|---|
| Under 65 | $20,000 minimum | |
| 65 – 74 | $25,000 minimum | |
| 75 – 79 | $30,000 minimum | |
| 80 – 84 | $35,000 minimum | |
| 85 – 89 | $45,000 minimum | |
| 90 – 94 | $55,000 minimum | |
| 95 and over | $70,000 minimum |
Data current as of . View ATO source →
How It's Calculated
The minimum is based on your account balance at 1 July (or when you start the pension, if mid-year) multiplied by the relevant percentage for your age at that date.
Example: Susan, Age 68
Susan is 68 years old on 1 July. Her pension account balance is $450,000.
Minimum drawdown calculation:
$450,000 × = $22,500
Susan must withdraw at least $22,500 from her pension during the financial year. She can take more if she wants, but not less.
Starting Mid-Year
If you start your pension part-way through the year, the minimum is pro-rated based on the number of days remaining in the financial year.
Example: Peter Starts in January
Peter, age 66, starts his pension on 15 January with $300,000. There are 167 days remaining until 30 June (out of 365 days in the year).
Pro-rated calculation:
$300,000 × 5% × (167 ÷ 365) = $6,863
Peter must withdraw at least $6,863 by 30 June.
What Happens If You Don't Meet the Minimum?
⚠️ Serious Consequences
If you don't withdraw at least the minimum by 30 June, the pension is treated as if it never existed for that year. This means:
- Investment earnings lose their tax-free status and are taxed at up to 15%
- The account may be treated as an accumulation account for the year
- You may need to restart the pension (with paperwork and potential delays)
Most super funds will contact you well before 30 June if you're at risk of not meeting your minimum. Pay attention to these reminders!
Practical Tips
💡 Set Up Automatic Payments
Most super funds let you set up regular automatic pension payments (monthly, quarterly, etc.). This is the easiest way to ensure you meet your minimum without having to remember. Set it slightly above the minimum to build in a buffer.
💡 Check Your Balance After Market Falls
After significant market downturns, your account balance may have dropped but your minimum (calculated on the previous 1 July balance) stays the same. Make sure you can still meet the minimum from your current balance.
💡 Age Matters at 1 July
Your age on 1 July determines your rate for the whole year. If you turn 75 on 2 July, you're still on the 65-74 rate (5%) for that year. If you turn 75 on 30 June, you're on the 75-79 rate (6%).
📱 Quick Minimum Drawdown Calculator
Estimate your minimum drawdown for this financial year:
Your minimum drawdown for :
$0
This is the minimum you must withdraw by 30 June. You can take more if needed.
Want a copy of the minimum drawdown rates?
TRIS vs Retirement Phase Minimums
The minimum drawdown rules are slightly different depending on whether you're in a TRIS (pre-retirement) or a full retirement phase pension:
| Pension Type | Minimum | Maximum |
|---|---|---|
| TRIS (still working) | 4% | 10% |
| Retirement phase pension | Age-based (4%–14%) | No maximum |
Once your TRIS converts to a retirement phase pension (when you meet a full condition of release), the 10% maximum cap is removed and the age-based minimum rates apply.
Questions About Your Pension Drawdown?
Getting your drawdown strategy right involves balancing income needs, tax, Centrelink, and making your money last.
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Disclaimer
NOT PERSONAL ADVICE — minimum drawdown rates can change. Always confirm current rates with the ATO or your super fund. Contact Us