We want to make sure you are aware of the changes in the minimum pension rules recently introduced because of COVID19.
Providing support for retirees
To assist retirees to manage the impact of volatility in financial markets on their retirement savings the Government is temporarily reducing the superannuation minimum drawdown requirements. The pension minimum for account-based pensions and similar products will be 50 per cent less for the 2019–20 and 2020–21 income years. This measure will hopefully benefit retirees by reducing the need to sell investment assets to fund minimum drawdown requirements.
| Age | Default minimum draw down rates (%) | Reduced rates by 50% for 2019-20 and 2020-21 |
| Under 65 | 4 | 2 |
| 65-74 | 5 | 2.5 |
| 75-79 | 6 | 3 |
| 89-84 | 7 | 3.5 |
| 85-89 | 9 | 4.5 |
| 90-94 | 11 | 5.5 |
| 95 or more | 14 | 7 |
Should you require any assistance in determining whether you have already paid the required minimum pension for this financial year please contact our office. We are here to help.
