fbpx

Economic Stimulus Package – What it means for self-funded retirees

Economic Stimulus Package – What it means for self-funded retirees

Federal Government’s second support package announced on March 22 offered assistance for self-funded retirees.

Minimum drawdown rates for account-based pensions and similar products will be halved for the 2020 and 2021 financial years. This means retirees will be under less pressure to sell shares or other pension assets in a falling market to meet the minimum payments they are required to withdraw each financial year.

The new rates are in the table below:

Age of memberDefault minimum drawdown ratesMinimum drawdown rate for the 2019-20 and 2020-21 income years
Under 654%2%
65-745%2.5%
75-796%3%
80-847%3.5%
85-899%4.5%
90-9411%5.5%
95 or more14%7%

Contact the Centaur Financial team if you’d like to discuss what these changes will mean for your income in retirement.

Information in this article has been sourced from the Treasury website: https://treasury.gov.au/sites/default/files/2020-03/factsheet6providingsupportforretireestomanagemarketvolatility-25march2.pdf

As always, if you would like to discuss the contents of this newsletter please give us a call 07 5559 5760.

Centaur Financial Services

Centaur Financial Services work as your partner, helping you navigate through the financial ups and downs life throws at you. First, it starts with your goals. Then it’s a lifelong commitment to achieving short, medium and long term objectives through a range of financial strategies and structures.

View All Services

Contact Us To Schedule A Free Consultation

Complete the following form and we will be in touch to arrange a free appointment.