Minimum Pension Drawdown Rates for 2026–27
By GrowThenDraw Editorial Team · Updated August 2, 2026 · 7 min read · Editorial policy
An account-based pension has a legal minimum payment each financial year. The amount is not based on what you spent last year: it starts with the pension balance and your age at the relevant 1 July.
Temporary COVID-era reductions do not apply in 2026–27. The ordinary Schedule 7 percentages are back in force.
The 2026–27 minimum percentage table
- Under 65: 4%
- 65 to 74: 5%
- 75 to 79: 6%
- 80 to 84: 7%
- 85 to 89: 9%
- 90 to 94: 11%
- 95 or older: 14%
Balance, age and rounding
For an existing pension, multiply the account balance at 1 July by the percentage for the beneficiary's age at that 1 July. The legal result is rounded to the nearest $10. An exact $5 is rounded up to the next $10.
A $500,100 balance for someone aged 65 produces $25,005 before rounding and a $25,010 statutory minimum.
A pension starting after 1 July
The first-year minimum is generally proportional to the number of days remaining in the financial year, including the start day. If the pension commences on or after 1 June, no minimum payment is required in that first financial year.
The fund's commencement date and opening pension balance are essential. A full-year percentage applied to a late-starting pension is not the legal first-year calculation.
What happens if the minimum is missed
Failing the minimum pension standards can affect whether the income stream is treated as a superannuation income stream for tax purposes. Trustees should not treat a calculator result as a substitute for reconciling actual pension payments before year-end.