Pension Drawdown Relief
The Government has announced that it will temporarily suspend the minimum drawdown requirements for account-based annuities and pensions for the second half of the 2008/09 income year (ie 1 January 2009 to 30 June 2009). That is, pensioners are only required to drawdown half of the minimum pension payment for this income year.
Pensioners who already have taken half of their minimum payment for 2008/09 means that a further drawdown will not be required until the 2009/10 income year.
Broadly, the minimum annual pension drawdown percentage is determined with reference to a pensioner’s age and the asset values supporting the pension as at 1 July of an income year.
