SMSF in retirement
SMSF minimum pension drawdown rates
By easySMSF, SMSF Specialist Team · Updated
Once your SMSF is in pension phase, the law requires a minimum payment to you each financial year — calculated as a percentage of your account balance at 1 July.
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2025–26 minimum drawdown table
The minimum is set by your age on 1 July (or pension commencement date). The percentages step up as you age, recognising that retirement savings should be drawn down over time rather than left to accumulate as an inheritance vehicle.
Missing the minimum is the most expensive trustee mistake. If you fall short by even $1, the ATO treats the pension as having stopped on 1 July — meaning the assets supporting it are taxed at 15% for the full year and the exempt current pension income exemption is lost.
easySMSF calculates your minimum each July, sends you a payment reminder, and reports the events to the ATO via TBAR. You stay compliant without thinking about it.
- Under 65: 4% of 1 July balance
- 65–74: 5%
- 75–79: 6%
- 80–84: 7%
- 85–89: 9%
- 90–94: 11%
- 95+: 14%
- Pro-rated in the first year (no minimum if started in June)
Frequently asked questions
General advice warning
Figures shown are illustrative only and based on the inputs and assumptions you provide. They are general information, not personal financial product advice. Consider your objectives, financial situation and needs, and seek personal advice from a licensed financial adviser before acting. easySMSF does not hold an Australian Financial Services Licence (AFSL).