If you have an account-based pension, you would be aware that there's a temporary 50% reduction in the minimum drawdown requirements for the 2019-20 and 2020-21 financial years. This measure is designed to assist retirees by reducing their need to sell investments to meet minimum drawdown requirements when market prices may be under pressure.
What are the new drawdown rates?
The reduced minimums are now available to everyone with an account-based pension, allocated pension, transition to retirement pension and term-allocated pension (growth pension).
*The reduced minimums are available for the 2019/2020 and 2020/2021 financial years. The minimum may be subject to change from time to time. For more information go to ato.gov.au
What you need to do for the 2019-2020 financial year
If you don’t want your pension payment to change for the current 2019-20 financial year, then you don’t need to do anything.
If you do want to change to the reduced minimum for this financial year, please contact us so that we can implement this change for you.
What will happen from 1 July 2020 to clients who are on minimum drawdown?
The new reduced minimum rates will automatically apply to all pensions clients who have previously elected to be on the minimum drawdown from 1 July 2020.
Please contact us if you want to increase your pension payments from 1 July 2020 above the reduced minimum rate.