The Federal Government has recently announced changes affecting those people in retirement who hold pensions and annuities by extending the current superannuation minimum drawdown rates for a further year to 30 June 2022.
Why is there change?
The Government reduced the superannuation minimum pension payment rates in response to the COVID-19 crisis.
What does this mean?
For the financial years ending 30 June 2020 and 30 June 2021, and now the extension includes the financial year ending 30 June 2022, the superannuation minimum drawdown rates have been reduced by 50%. Referring to the table below, your age dictates your drawdown percentage:
For more information please contact our office.
Contributed by Tim Heuston.