Pension Flexibility Extended

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The Federal Government recently announced an extension to the temporary reduction in minimum pension requirements until 30 June 2022.

The Federal Government unveiled an extension of this 50% temporary reduction in superannuation minimum drawdown rates – for a further year extending through to 30 June 2022. This COVID-19 measure was designed to provide greater flexibility and enable greater self-sufficiency for retirees.

Account based pension drawdown rates are set out in the table below:

Age at 1 July Each Year

Temporary Minimum Drawdown Rates until 30 June 2022

Default Minimum Drawdown Rates – from 1 July 2022

Preservation age to 64

2%

4%

65 – 74

2.5%

5%

75 – 79

3%

6%

80 – 84

3.5%

7%

85 – 89

4.5%

9%

90 – 94

5.5%

11%

95 and over

7%

14%

You can read more details including a range of scenarios on the government website here.

For any assistance with understanding this temporary reduction and the associated drawdown rates, please contact your Hall Chadwick QLD advisor.

 

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