1300 968 776Pension Options
Pension Options
The chart below gives a comparison of pension options for members aged 55 and over, whether retired or not. It is a basic comparison covering age, retirement status, minimum and maximum pension and tax.
| Age | Retired | Minimum (See Note 1) | Maximum | Tax On Pension |
|---|---|---|---|---|
| 55 or over but under 60 | No* | 4% | 10% | On taxable proportion less 15% rebate |
| 55 or over but under 60 | Yes | 4% | None | On taxable proportion less 15% rebate |
| 60 or over but under 65 | No* | 4% | 10% | Nil |
| 60 or over but under 65 | Yes | 4% | None | Nil |
| 65 and over | Does not matter | 5% # | None | Nil |
* Where the member draws a pension prior to age 65 and has not retired, the pension is paid as a transition to retirement pension (account based). It means there is a maximum pension and lumps sums are not available until age 65 or retirement, whichever occurs first.
# The minimum % increases after age 75.
Note 1. The minimum has been temporarily halved, so 4% becomes 2% and 5%
becomes 2.5%, but only for the 2009, 2010 and 2011 years. For the 2012 year, the discount is
25%, meaning the minimum pension is 3% for those under 65 and 3.75% for those 65 and over.
From 1 July 2012, the previous full minimums apply.
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