On 29 May 2021, the Government announced that the temporary 50 per cent reduction to the minimum superannuation income payments from account based pensions and market linked pensions (also referred to as term allocated pensions) will be extended by another year, to 30 June 2022. The existing 50 per cent reduction is due to end on 30 June 2021.  This proposal is in response to the pandemic and is aimed at providing retirees with more flexibility and choice over their superannuation.


Minimum percentage factors 2021-221

Age

Standard rate

Rate with reduction

Under 65

4.00%

2.00%

65 – 74

5.00%

2.50%

75 – 79

6.00%

3.00%

80 – 84

7.00%

3.50%

85 – 89

9.00%

4.50%

90 – 94

11.00%

5.50%

95 and over

14.00%

7.00%


An amending regulation to implement this proposal is yet to be made. 

Additional information

Prime Minister of Australia, Supporting retirees with extension of the temporary reduction in superannuation minimum drawdown rates, 29 May 2021

1 Multiply factor by 1 July account balance or pension commencement value if commenced after 1 July. 

 

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