Coronavirus (COVID-19) updates from the Australian Government

Retirees

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Retirees whose savings are affected by financial market volatility can take advantage of a temporary reduction in minimum superannuation drawdown requirements.

Social security deeming rates are also being reduced in recognition of low interest rates on savings.

Reduced drawdowns

Superannuation minimum drawdown requirements for account-based pensions and similar products are being reduced by 50 per cent for the 2019-20 and 2020-21 income years.

This is designed to ease pressure on retirees to sell investment assets in the current economic climate.

Your minimum drawdown allowance will vary depending on your age.

For those under 65 the minimum drawdown halves from 4 per cent to 2 per cent. For those aged 74 to 79 it halves from 6 per cent to 3 per cent. For those aged 95 and over it drops from 14 to 7 per cent.

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.

The change reflects the low interest rate environment, reducing the income deemed to have been earned from interest on investments and savings allowing for an increase in social security payments.

Fact sheet

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