The government has recently announced its plan to extend the temporary 50% reduction to the minimum income drawdown requirement from allocated pensions until June 30, 2022.

Originally, this reduction only applied to the 2019/20 and 2020/21 financial years and was designed to help reduce the impact on allocated pension accounts during the economic downturn.

For example, a person aged 65-74 must withdraw 5% of their allocated pension balance throughout a financial year. Given the reduction, the new minimum withdrawal amount is 2.5% of the balance.

As always, if you have any questions or want to know how this relates to your personal situation, please do not hesitate to contact the Crest team on 02 4929 2552.