Minimum Pensions Halved – 2020 & 2021
Retirees have support to preserve their superannuation benefits by changing their minimum pension.
Superannuation fund values will have suffered from coronavirus driven financial market volatility, particularly since stock market peaks of February 2020.
The Government is temporarily reducing the superannuation minimum drawdown requirements for account-based pensions and similar products by 50% for the 2019-20 and 2020-21 income years.
|
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 |
|
80-84 |
7 |
3.5 |
|
85-89 |
9 |
4.5 |
|
90-94 |
11 |
5.5 |
|
95 or more |
14 |
7 |
A similar temporary measure occurred from 2009 to 2011 following the global financial crisis.
This measure will reduce the need to sell investment assets (at a depressed time) to fund minimum drawdown requirements.
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