Mar 29, 2020  | Tags: superannuation, account-based pension

Our Insights

To provide retirees with more flexibility in managing their retirement incomes: The government has announced as part of the Australian Government economic support package to help Australians who are under financial stress as a result of the Coronavirus: It is reducing the minimum pension payment requirement for account based pensions and similar products by 50% in both 2019-20 and 2020-21.

Who is eligible?

All Superannuation Account Based Pension holders (Allocated Pensions).

How much is the decrease?

The amount by which you can reduce your pension payment will depend on your age:

Age minimum annual pension payment new minimum annual pension payment for 2019-20 and 2020-21

• Under 65 from 4% to 2%
• 65 – 74 from 5% to 2.5%
• 75 – 79 from 6% to 3%
• 80 – 84 from 7% to 3.5%
• 85 – 89 from 9% to 4.5%
• 90 – 94 from 11% to 5.5%
• 95+ from 14% to 7%

The minimum percentages are calculated based on the account balance at commencement of the pension and at the start of the financial year.

Need Advice?

Contact us via the following page. Calder Wealth Management

This is general advice only and does not take into account your financial circumstances, needs and objectives. Before making any decision based on this document, you should assess your own  circumstances or seek advice from a financial adviser and seek tax advice from a registered tax agent. Information is current at the date of issue and may change.