Reduction to Minimum Drawdown Requirements for Account-Based Pensions Extended

Reduction to Minimum Drawdown Requirements for Account-Based Pensions Extended 150 150 Bryan Roberts

If you were speed reading you may have missed it… in contrast to previous federal budgets superannuation took up little more than a third of a page this time around.

In what is a welcome change of pace, the only measure announced was an extension to the 50% reduction to minimum drawdown requirements for those with account-based pension income streams until June 30th 2023.

This will impact a large portion of Australian retirees with the lower minimum requirements applied to the following:

  • Account-based and allocated pensions;
  • Account-based and allocated annuities; and
  • Market- linked pensions (term allocated pensions).

The reduced minimum requirements will not apply to non-account-based income streams such as fixed term annuities and lifetime annuities.

Despite a quiet budget for superannuation, July 1st 2022 will see a swathe of changes come into effect. You can read more about those from Executive Financial Advisor Jason King here.

If you have any questions on what these changes may mean to you, please contact your Viridian advisor.

Bryan Roberts is an Executive Advisor at Viridian Advisory.

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