Coronavirus Support for Retirees
Updated 23 March 2020
To manage the impact of volatility in financial markets on Retirees savings, The Government is temporarily reducing superannuation minimum drawdown requirements for account-based pensions and similar products by 50 per cent for the 2019-20 and 2020-21 income years.
This measure will benefit retirees with account-based pensions or similar products and whose superannuation product balance may have already been impacted by downward market movement, by reducing the need to fund the usual minimum drawdown requirements.
The reduction applies for the 2019-20 and 2020-21 income years.
Please view the ‘Providing support for retirees’ factsheet for more details.
| Age | Default minimum drawdown rates (%) | Reduced rates by 50 percent for the 2019-20 and 2020-21 income years (%) |
| Under 65 | 4 | 2 |
| 65-74 | 5 | 2.5 |
| 75-79 | 6 | 3 |
| 80-84 | 7 | 3.5 |
| 85-89 | 9 | 4.5 |
| 90-94 | 11 | 5.5 |
| 95 or more | 14 | 7 |
Changes to Social Security Deeming rates
The Government is also reducing both the upper and lower social security deeming rates by a further 0.25 percentage points in addition to the 0.5 percentage point reduction to both rates announced on 12 March 2020.
As of 1 May 2020, the upper deeming rate will be 2.25 per cent and the lower deeming rate will be 0.25 per cent. The reductions reflect the low interest rate environment and its impact on the income from savings.
Please view the ‘Providing support for retirees’ factsheet for more details.