Halving of pension minimums for FY2022
On the 29th of May, the federal government announced an extension of the temporary reduction in superannuation minimum drawdown rates for a further year to 30 June 2022.
|
Age |
Reduced percentage factor for 2019/20, 2020/21 and 2021/22 | Normal percentage factor |
|
Under 65 |
2% |
4% |
|
65–74 |
2.50% | 5% |
|
75–79 |
3% |
6% |
|
80–84 |
3.50% |
7% |
|
85–89 |
4.50% |
9% |
| 90–94 | 5.50% |
11% |
| 95 or more | 7% |
14% |
The government says their aim is to make life easier for retirees by giving them more flexibility and choice in their retirement. This extension builds on the additional flexibility announced in the 2021-22 Budget.
There is no action that needs to be taken until the new financial year.
For existing clients, we will be reaching out to those of you affected by this change. In the meantime, if you wish to discuss please do not hesitate to contact us.