Crystal Wealth Newsroom
Pension minimum payments to increase to pre-COVID-19 rates
As part of the Federal Government’s response to COVID-19’s impact on the investment markets, superannuation pension minimums were halved.
From 1 July, however, they will return to the normal age-based minimums.
| Age at 1 July each year | Standard minimum drawdown rates from 1 July 2023 |
| Preservation age to 64 | 4% |
| 65 to 74 | 5% |
| 75 to 79 | 6% |
| 80 to 84 | 7% |
“Many people will be used to drawing down at the reduced rate, so it’s really a good time to review your cashflow requirements and know exactly what you’re going to need, and make plans for any additional drawdown,” says Louise Lakomy, Director at Crystal Wealth Partners.
If you don’t need the additional income on a day-to-day basis, you can continue drawing down at the reduced rate, before taking out a lump sum in June 2024.
“That way, you’re leaving money in super for as long as possible,” says Louise.
“A strategy then could be to invest in a personal portfolio, which could enable you to keep that money invested, just outside of super.”
If you’d like to speak to Louise or any of the Crystal Wealth Partners team about the impact of the increased minimum drawdown rates, get in touch with us today.