With the announcement of the new ‘Flexible Drawdown‘ retirement options announced by the Treasury recently, here at incomedrawdown.org.uk we have been asked many times, “what is the definition of MIR?”.
below is the definition of Minimum Income Requirement, MIR:
To access flexible drawdown the declaration made by the member or dependant in a tax year must be that his/her relevant income in that tax year is at least £20,000. Relevant income for this purpose includes the following:
· Scheme pension (including pension received as a dependant) from a registered pension scheme (RPS) or from a relevant non-UK scheme
· Lifetime annuity (including annuities received as a dependant) from a RPS or from a relevant non-UK scheme
· State pensions
In all cases the pension must be in payment. Drawdown pensions and purchase life annuities are not classed as relevant income.
The Treasury will review this limit at least every five years.