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.
