The Government has extended the temporary reduction in superannuation minimum drawdown rates until 30 June, 2022.
The original reduction was part of the Government’s response to the COVID-19 pandemic which was a reduction by 50% for the 2019/20 and 2020/21 income years.
“For many retirees, the significant losses in financial markets as a result of the COVID 19 crisis are still having a negative effect on the account balance of their superannuation pension,” a joint announcement by Prime Minister Scott Morrison and Treasurer Josh Frydenberg said.
“This extension builds on the additional flexibility announced in the 2021/22 Budget.”
The research house has offered a silver lining after super fund returns saw the end of a five-month streak last month.
A survey of almost 6,000 fund members has identified weakening retirement confidence, particularly among those under 55 years of age, signalling an opportunity for super funds to better engage with members on their retirement journey.
The funds have confirmed the signing of a successor fund transfer deed, moving closer to creating a new $29 billion entity.
A number of measures, including super on Paid Parental Leave, funding to recover unpaid super, and frameworks to encourage investment in the energy transition, have been welcomed by the superannuation industry.
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