What are the minimum pension drawdown rates for 2025-26?

The standard age-based minimum drawdown percentages for FY 2025-26 are: under 65 — 4%; 65 to 74 — 5%; 75 to 79 — 6%; 80 to 84 — 7%; 85 to 89 — 9%; 90 to 94 — 11%; 95 and over — 14%. The percentage is applied to the account balance at 1 July of each year (or at the commencement date for the first year). The minimum payment must be drawn from the pension account each year to maintain the tax-exempt status of the underlying earnings. These rates are set out in regulation 1.07A of the Superannuation Industry (Supervision) Regulations 1994.

How is the first-year drawdown pro-rated?

For pensions commenced part-way through the financial year, the minimum payment is pro-rated by the number of days remaining in the year. The formula is: pro-rata minimum = annual minimum × (days from commencement to 30 June ÷ days in the year). For example, a pension commenced on 1 January in a non-leap year has 181 days remaining, so the minimum is annual × 181/365. The result is rounded up to the nearest $10. After the first year, the full annual minimum applies based on the 1 July balance.

What happens if I commence a pension after 1 June?

If your account-based pension or TTR pension is commenced on or after 1 June of a financial year, no minimum payment is required for that year (an ATO concession). The first minimum payment requirement starts in the following financial year, calculated as the full age-based percentage of the 1 July balance. This concession only applies in the first year of the pension and is automatically available — no application to the ATO is required.

Does the COVID-era half-rate still apply?

No. The temporary 50% reduction in minimum pension drawdown rates that applied from FY2019-20 to FY2022-23 to support retirees during the COVID-19 pandemic ended on 30 June 2023. From 1 July 2023 onwards, the standard rates (4% to 14% by age bracket) apply to all account-based pensions, TTR pensions and SMSF pensions. There has been no extension of the half-rate concession by the federal government for FY2025-26 or subsequent years.

Super Minimum Pension Drawdown Calculator AU 2025-26

What this calculator works out

This calculator estimates the minimum annual payment you must draw from an account-based pension, transition-to-retirement (TTR) pension or SMSF pension for FY 2025-26, including:

The age-based percentage that applies to the 1 July balance.
The first-year pro-rata for pensions commenced part-way through the year.
The 1 June no-payment exception for pensions commenced very late in the year.
The standard rates that apply now that the COVID-era half-rate concession has ended.

Numbers come from the ATO minimum annual payments page and SIS Regulation 1.07A. This is a general estimate, not personal financial advice.

The formula and where the rates come from

The minimum annual pension payment for FY 2025-26 is:

annual minimum   = account balance at 1 July × age-based percentage
pro-rata minimum = annual minimum × (days remaining in year ÷ days in year)
                                   (only for the first year)

Age-based percentages (standard rates from 1 July 2023):

Age	Percentage
Under 65	4%
65 to 74	5%
75 to 79	6%
80 to 84	7%
85 to 89	9%
90 to 94	11%
95 and over	14%

Key rules:

The percentage applied is the one based on your age at 1 July (or at commencement for the first year).
The minimum is calculated on the balance at 1 July, not the average for the year.
The minimum must be paid before 30 June to preserve the pension's tax-exempt earnings status.
Payments can be in any number of instalments (monthly, quarterly, lump sum) — only the annual total matters.
The minimum is rounded up to the nearest $10.

1 June concession: If you commence a pension on or after 1 June of a financial year, no minimum payment is required for that year. The first minimum-payment requirement is in the following financial year, calculated on the full age-based percentage of the 1 July balance.

How to read the inputs

Age at start of the financial year — your age on 1 July (or at the commencement date for the first year). Determines the percentage.
Account balance at 1 July — the balance at 1 July (or at commencement for the first year). Use the actual balance; do not net out projected withdrawals.
First year toggle — turn on for the first year of the pension. Pro-rates the minimum by days remaining.
Commencement day — day-of-year (1 = 1 July, 365 = 30 June). 1 January is day 185 in a non-leap year. 1 June is approximately day 336.

Worked examples

1. Age 60, $500,000 balance, full year. Under 65 → 4%. Minimum = $500,000 × 4% = $20,000.

2. Age 70, $400,000 balance, full year (TTR pension). 65–74 → 5%. Minimum = $400,000 × 5% = $20,000. Note: TTR pensions also have a maximum of 10% per year, so the maximum is $40,000.

3. Age 82, $250,000 balance, full year. 80–84 → 7%. Minimum = $250,000 × 7% = $17,500.

4. Age 96, $100,000 balance, full year. 95 and over → 14%. Minimum = $100,000 × 14% = $14,000.

5. Age 60, $500,000 balance, commenced 1 January (day 185 in non-leap year). Days remaining = 365 − 185 + 1 = 181 days. Pro-rata = $20,000 × 181/365 ≈ $9,917, rounded up to $9,920.

6. Age 65, $300,000 balance, commenced 15 June (day ≈ 350). 15 June is on or after 1 June → no minimum payment required for this financial year. Next year's minimum = $300,000 (or whatever the 1 July balance is) × 5% = $15,000.

Common pitfalls

Forgetting the 30 June deadline. If you do not draw at least the minimum by 30 June, the ATO can treat the income stream as having ceased, meaning the underlying earnings become taxable at 15% retrospectively for the year. Set up automatic monthly transfers to avoid the risk.
Using the average balance. The minimum is based on the 1 July balance, even if the balance has fallen during the year. Market downturns do not reduce the obligation.
Confusing minimum with maximum. Account-based pensions have no maximum; you can draw as much as you like, including a full lump sum. TTR pensions have a 10% maximum until you meet a condition of release (typically retirement or age 65).
Half-rate confusion. The temporary 50% half-rate concession ran for FY2019-20 to FY2022-23 only. From 1 July 2023 the standard rates apply. Many old articles still quote the half-rate (2% for under-65) — these are out of date.
Wrong age bracket on a birthday. The percentage is based on age at 1 July (or commencement). If you turn 65 on 2 July, you are still in the under-65 bracket (4%) for that whole financial year. The new rate applies from the next 1 July.
Pro-rating in subsequent years. Pro-rata only applies to the first year. From the next 1 July the full annual minimum applies.

Related calculators

Transition to Retirement Pension Calculator — combines a TTR pension with salary sacrifice.
Salary Sacrifice Super Calculator — pre-tax contributions strategy.
Super Carry Forward Cap Calculator — unused concessional cap rollover.
Super Co-Contribution Calculator — government top-up for low/middle income earners.
Div 293 Extra Super Tax Calculator — additional 15% tax for high-income earners.

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