Temporarily reducing super minimum drawdown rates

Last week the Federal Government announced a range of financial assistance measures to support Australians impacted by the Coronavirus (COVID-19) pandemic. This assistance includes temporarily reducing superannuation minimum drawdown rates and changes to social security deeming rates.

This affects account-based pension minimum drawdown requirements by 50 percent for 2019-20 and 2020-21. This measure will benefit retirees holding these products by reducing the need to sell investment assets, at a time where the value of those investments has been reduced, to fund minimum drawdown requirements.

More details around the reduced drawdown requirement and social security deeming rates, can be found here.

Prime Super is here to provide members with support during this uncertain time. Should you wish to reduce your pension drawdown or have any questions on these changes, please call our team on 1800 675 839.