Economic stimulus for self-funded retirees

Federal Government’s second support package announced on March 22 for assistance to self-funded retirees.

Minimum drawdown rates for account-based pensions and similar products will be halved for the 2020 and 2021 financial years.

This means retirees will be under less pressure to sell shares or other pension assets in a falling market to meet the minimum payments they are required to withdraw each financial year.

The new rates are in the table below:

Pension Drawdown Rates

Contact us if you’d like to discuss what these changes will mean for your income in retirement. 

Source: https://treasury.gov.au/sites/default/files/2020-03/factsheet6providingsupportforretireestomanagemarketvolatility-25march2.pdf