News

Self-Funded Retirees Get Extension of Minimum Pension Relief for 2021-22 Financial Year

The Government has passed regulations to extend the temporary reduction in superannuation minimum drawdown rates through to the 2021-22 financial year. Minimum pensions will again be halved for all account-based and term allocated income streams as follows for the 2021-22 financial year.

Your Age

Normal Minimum Pension

(% of 1 July balance)

Reduced Minimum
for 2021/22

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 older 14%

7%

Your existing superannuation pension account will retain your existing arrangements and not make any changes without your instructions (i.e. keep pension at existing minimum level or current nominated payment amount each month).  If you have adequate cash flow and are interested in lowering your pension payments to take pressure off your pension account balance, please contact your adviser to discuss further.

Share This Post