17 Apr 2020
New Pension Minimums
- Posted by Dejan Pekic BCom DipFP CFP GAICD, Senior Financial Planner
The Federal Government has announced measures to help minimize the economic impact of COVID-19 on superannuation account based pensions.
One such measure is a temporary 50% reduction to the required minimum annual withdrawal amounts from superannuation account based pensions. The new minimums is voluntary only and can be accessed during both the current financial year and the upcoming 30 June 2021 financial year.
|
Age
|
Default minimum drawdown rates
|
Reduced by 50%
|
|
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 and older
|
14%
|
7%
|
If you need any help to action this income reduction and allow more of the capital to remain invested for the next 14 months, please email or call us on 02 9267 2322.
At Newealth we are always looking to support and promote our clients wherever possible and if you have any ideas or comments, please feel free to email me or to call me on +61 2 9267 2322.
