Due to the economic downturn throughout the COVID-19 pandemic, and further volatility in the financial markets in 2022, the government has extended the temporary reduction in superannuation minimum drawdown rates for a further year to 30 June 2023.

This measure was implemented to support retirees in managing the impact of the recent fluctuations in financial markets and the impact of the prevailing low interest rates on their retirement savings.

The minimum drawdown rate for 2022–23 is based on your closing account balance on 30 June 2022 as well as your age on 1 July. This current income year, the drawdown rates are as follows:

• under 65 years — 2%

• 65 to 74 — 2.5%

• 75 to 79 — 3%

• 80 to 84 — 3.5%

• 85 to 89 — 4.5%

• 90 to 94 — 5.5%

• 95 or over — 7%

Even though the minimum amount has been reduced, there is no change to the maximum you can take out of your superannuation. Despite the turbulence in the financial markets, it may be best suited for your personal needs to take out more this year to help with cost-of-living pressures. However, this must be done carefully, as it may intrude on eligibility for your other government benefits.

Please give us a call to discuss your upcoming monthly pension amounts for the next income year. We would be delighted to assist you further.