Reducing pension payments
Minimum drawdown requirements for account-based pensions will be temporarily reduced by 50 per cent.
As part of its COVID-19 response, the Government is temporarily reducing superannuation minimum drawdown requirements for account-based pensions by 50 per cent for both 2019-20 and 2020-21 financial years. This measure is intended to reduce the need to sell investment assets to fund minimum draw-down requirements.
While deeming rates do not affect all members, it’s important to also be aware that from 1 May 2020, deeming rates will be reduced to reflect the low interest rate environment and its impact on income from savings.
More detailed information about reduced minimum drawdowns and deeming rates can be found in the Australian Government’s Providing support for retirees factsheet.
What you need to do
The process for reducing minimums is still being developed by the Federal Government and superannuation funds. We will contact legalsuper Pension account holders directly with details once they become available.
This page will be updated as more information becomes available.
This is general information only and does not take into account your individual objectives, financial situation or needs. Accordingly, before taking any action, you should consider whether it is appropriate to you, having regard to your objectives, financial situation and needs. You should obtain a copy of legalsuper’s Product Disclosure Statement (PDS) which is available by contacting legalsuper or via its website at legalsuper.com.au before making a decision.