Reduced minimum drawdown requirements
From 1 July 2023, the Government's temporary reduced minimum drawdown rates end and will revert to the default minimum drawdown rates for the 2023/24 financial year.
As part of its COVID-19 response, the Government temporarily reduced superannuation minimum drawdown requirements for account-based pensions by 50 per cent for the 2019/20, 2020/21 and 2022/23 financial years. This measure was intended to reduce the need to sell investment assets to fund minimum drawdown requirements.
This Government measure will end on 30 June 2023. The minimum drawdown rates will revert to the default minimum drawdown rates for the 2023/24 financial year. This will apply to all account based pensions, with no reductions.
What are the minimum income amounts?
Your annual pension payments must be at least the minimum limit set by the Federal Government. The limit applicable to you is determined by your age, your annual pension account balance, and the Government’s minimum payment percentage.
The table below shows the Government’s minimum percentage factor for certain pensions and annuities (indicative only) for each age group. More detailed information about minimum drawdowns can be found on the ATO website.
|Age at 1 July each year||Temporary minimum drawdown rates end June 2023||Standard minimum drawdown rates from July 2023|
|Preservation age to 64||2%||4%|
|95 or older||7%||14%|
Contact us for help
We understand that making changes to your Pension account can be complex. Our Client Service Managers are on standby to help you.
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.