On Saturday 29 May 2021, the Government unexpectedly announced an extension of the temporary reduction in superannuation minimum drawdown rates through to financial year 2021/22.
This measure is to help preserve superannuation balances for those individuals that do not require as much cashflow during these times. From 1 July 2021 minimum drawdown rates will remain halved for all account-based pensions as follows:
Reduced minimum for 2021/22
|95 or older||14%||7%|
This is good news for many who are currently drawing the reduced minimum payments and were expecting these payments to more than double from 1 July 2021. For those currently drawing higher than the minimum, you can continue with your existing level of payment.
As always please contact your adviser if you have questions regarding this announcement or wish to vary your pension payment amounts.