IMPORTANT: Minimum super withdrawal reduced by 50% for retirement phase pensions
In response to the COVID-19 pandemic, the Federal Government recently announced that the minimum superannuation drawdown rate would be halved for the 2019/20 and 2020/21 financial years. This measure is designed to benefit retirees by reducing the potential need to sell investment assets into a depressed market to fund their minimum drawdown requirements. See the following table for details:
| Age | Default minimum drawdown rates (%) | Reduced rates by 50 per cent for the 2019-20 and 2020-21 income years (%) |
|---|---|---|
|
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 |
Please note that if you have already drawn more than your reduced minimum for this financial year, you are unable to return the excess amount.
The information provided in this article is general in nature and does not take into account your personal circumstances, needs, objectives or financial situation. This information does not constitute financial or taxation advice. Before acting on any information in this article, you should consider its appropriateness in relation to your personal situation and seek advice from an appropriately qualified and licensed professional.