Minimum rates for 2026–27
| Age at 1 July | Minimum each year |
|---|---|
| Under 65 | 4% |
| 65–74 | 5% |
| 75–79 | 6% |
| 80–84 | 7% |
| 85–89 | 9% |
| 90–94 | 11% |
| 95 or more | 14% |
A simple example
Margaret is 68 on 1 July 2026 and her account-based pension balance is $400,000. Her minimum for 2026–27 is 5% of $400,000, which is $20,000. She can take more at any time; there is no maximum for an ordinary account-based pension.
Points to watch
- Starting part way through the year: the minimum is pro-rated for the days left in the financial year. A pension that starts in June has no minimum for that year.
- Transition to retirement pensions have the same minimums and also a maximum of 10% of the balance each year: see transition to retirement pensions.
- If the minimum is not paid, the pension may be treated as not having been paid for tax purposes for that year, so check your payments before 30 June.
- Pension payments interact with the Age Pension income test: see Age Pension basics.
Quick answers
What is the minimum pension drawdown for someone aged 65 to 74?
5% of the account balance at 1 July each year.
Is there a maximum drawdown?
Not for an ordinary account-based pension. A transition to retirement pension is capped at 10% of the balance each year.
Sources
- ATO: Payments from super, minimum annual payments
- ATO: Income streams (standards and minimum payments)
- Moneysmart: Account-based pensions
General advice warning. This article is general information only and does not take into account your objectives, financial situation or needs. Rules, rates and thresholds change; check the sources above. Consider the relevant PDS and our Financial Services Guide and seek personal advice before acting. FinForce is a Corporate Authorised Representative (No. 001241242) of Financial Force Pty Ltd, ABN 42 091 425 464, AFSL 238337.