Support for retirees during coronavirus health emergency
The Federal Government has announced two measures to help retirees manage the impact of volatility in financial markets on their retirement savings.
Temporary reduction in minimum superannuation (pension account) drawdown requirements
The Government is temporarily reducing minimum drawdown requirements for account-based pensions (and similar products) by 50 per cent for 2019-20 and 2020-21 income years.
| Age | Default minimum drawdown rates | Reduced rates for the 2019-20 & 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 older | 14% | 7% |
Table sourced from ‘Providing support for retirees’ factsheet prepared by the Australian Government, March 2020 (https://treasury.gov.au/coronavirus/households).
This measure provides flexibility to members with account-based pensions, as they can choose to withdraw less of their retirement savings and keep a greater amount invested.
Please visit the Treasury website for full details.
You can change your Media Super pension payment amount by logging into your account online and heading to the 'Payment' page.
Changes to social security deeming rates
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 income from savings.
Deeming rates are used by Government to assess the potential returns from assessable investment assets, regardless of the assets’ actual investment returns. The lower deeming rates benefit income support recipients as the lower deemed income reduces one of the barriers to Government income support.
We’re here to help
If you have any questions about changing your pension payment amount or your Media Super account in general, please contact us today.
You can find more information on the Government’s coronavirus response for individuals and businesses on the Treasury website.
