The temporary halving of minimum drawdown rates for retirement superannuation accounts — introduced in March 2020 while the Australian stock market was in freefall — would continue for another year.
The explanation was terse and does not stand up to scrutiny.
The biggest beneficiaries of the extension are the wealthy retirees, who use super to escape tax on funds they are building up to hand on to their children.
It provides no benefits to less well-off retirees who need to use money in super to live on in retirement.
- ^ media release (ministers.treasury.gov.au)
- ^ March 2020 (ministers.treasury.gov.au)
- ^ 10.3% (www.apra.gov.au)
- ^ Retirement incomes review finds problems more super won't solve (theconversation.com)
- ^ S&P Global (www.spglobal.com)
- ^ explanation (www.pm.gov.au)
- ^ APRA Quarterly superannuation performance statistics, March 2021, Table 1C (www.apra.gov.au)
- ^ Home ownership and super are far more entwined than you might think (theconversation.com)
Authors: Kevin Davis, Emeritus Professor of Finance, The University of Melbourne