News

Temporary reduction to pension drawdown rates comes to an end

01 Jun 2023 2 min read

In response to COVID-19 and the impact on financial markets, the government announced a temporary reduction in the minimum drawdown rates by 50% from the 2019/20 financial year onwards.

As of July 1 2023, the temporary reduction comes to an end, and the standard minimum drawdown rates will apply from the 2023/24 financial year.

What are drawdown rates?

Pension account holders (including NGS Income account members) are required to draw down a minimum percentage of their account each year, known as the pension drawdown rate. How much you will need to draw down from your account each year as a minimum will depend on your age.

What is the minimum you need to withdraw?

For your minimum annual drawdown rate for upcoming financial years, view this Industry SuperFunds table. The drawdown rate is applied to your pension account balance at 1 July to determine the minimum drawdown amount for that financial year.

Need help?

Sometimes super can seem complex, but it doesn’t need to be. Our Super Specialists make the conversation easy to understand. Why not connect with an NGS Super Specialist and start planning today for a brighter tomorrow?

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