Reduction to minimum pension drawdowns for 2008/09

Written on the 22nd of February 2009 by PlannerWeb

The Government has announced that investors in account based pensions, allocated pensions and term allocated pensions (TAP's) will only be required to draw down half of their calculated minimum income requirement for 2008/09.

In practice, this means that pension investors who have already received 50% or more of their minimum payment amount for 2008/09 will not be required to receive any further payments for the remainder of this financial year.

At this stage, the 50% relief measure from drawing down income will only apply up to 30 June 2009.

Attached is a link to the Government's press release.