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.

This post and some supporting materials may be regarded as general advice. That is, your personal objectives, needs or financial situations were not taken into account when preparing this information. Accordingly, you should consider the appropriateness of any general advice we may have given you, having regard to your own objectives, financial situation and needs before acting on it. Where the information relates to a particular financial product, you should obtain and consider the relevant product disclosure statement before making any decision to purchase that financial product. The material in this post is correct and complete as of the date it was posted. Viridian is not responsible for, and expressly disclaims all liability for, damages of any kind arising out of use, reference to, or reliance on any information contained within this site.

    Get in touch