KW Insights | Minimum Pension Rates
Federal Government extends temporary reduced minimum pension rates for 2022 year.
The Federal Government have extended the temporary reduction in superannuation minimum pension rates for a further year, to 30th June 2022.
For the 2020 and 2021 year, as part of the response to the Coronavirus pandemic, the government reduced the minimum pension rates by 50%.
The minimum pension rates, extended to 30th June 2022 are as follows:
| Age | Ordinary Minimum Pension Rate | Reduced Minimum Pension (50%) |
|---|---|---|
| Under 65 | 4% | 2% |
| 65-74 | 5% | 2.5% |
| 75-79 | 6% | 3% |
| 80-84 | 7% | 3.5% |
| 85-89 | 9% | 4.5% |
| 90-94 | 11% | 5.5% |
| 95+ | 14% | 7% |
This enables pension members to retain more of their tax free asset base within their super fund.
If you’re unsure how this announcement applies to you, please don’t hesitate to reach out to your King & Whittle adviser.