Reduction in minimum pension drawdown requirements

How to recalculate minimum pension to avoid underpayments.

In response to the Covid-19 situation, the superannuation law has been amended to halve the normal drawdown rate for any: 

  • account-based pensions (including transition to retirement income streams), 
  • market linked pensions (also known as “term allocated” pensions), and 
  • allocated pensions 

for both 2019/20 and 2020/21. 

The most common type of pension paid from an SMSF is an account-based pension. With a few very rare exceptions, the relief will apply to all funds paying the above pensions such as SMSFs, industry funds and retail funds, regardless of when the pension commenced. 

Click the link below to download our 'Reduction in minimum pension drawdown requirements Factsheet' for Trustees.

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