1 July 2024 changes affecting retirees
A new financial year means changes to superannuation and the Age Pension. We’ve wrapped up the key changes that might affect you and your retirement income over the next 12 months. And remember, if you have questions – we’re here to help.
Pension drawdown limits
There are no changes to the minimum drawdown limits.
Minimum annual drawdown limits for both CareSuper Pension and transition to retirement (TTR) pensions are based on your age, with the minimum amount increasing as you get older. It’s important to ensure you meet the minimum amount required for your age each year, otherwise you could be penalised. You can find the limits and more info at Managing your pension.
Changes to the Age Pension
Further to the changes to the upper income and asset thresholds effective from 20 March, the lower thresholds will now change from 1 July. This means more people will become eligible for a full Age Pension. Otherwise, you might be entitled to a higher payment, or if your Age Pension eligibility is just outside the current threshold, you may now become eligible.
You can find more information about the changes to the thresholds at Retirement Essentials.
Deeming rates frozen
Deeming rates have been frozen for a further 12-months, with the upper rate paused since 1 July 2022 at 2.25 per cent due to the Covid pandemic. The deeming rate thresholds are also increasing.
The deeming rate is the figure used to estimate how much financial investments are earning, and how much government entitlements pensioners are eligible for. This will enable retirees to benefit from increases in interest rates and returns, without reductions to their Age Pension entitlement.
| Current thresholds | New thresholds (1 July) | Change | Current rates (frozen until 30 June 2025) | |
| Singles up to | $60,400 | $62,600 | $2200 | 0.25% |
| Singles above | $60,400 | $62,600 | 2.25% | |
| Couples up to | $100,200 | $103,800 | $3600 | 0.25% |
| Couples above | $100,200 | $103,800 | 2.25% |
Changes for accumulation members
Interested in the changes for accumulation? We’ve wrapped up the key changes – including a further increase to the superannuation guarantee (SG) rate - in this article.
Access financial advice when you need it
When was the last time your pension account had a health check? Your retirement income shouldn’t be a ‘set and forget’ proposition. The new financial year is an opportune time to reflect on the year that was, make sure your investment option is still aligned to your goals, and that your current drawdown strategy is right for your circumstances for the coming year.
Remember you have access to financial advice to sort your super over the phone at no extra cost.* Or, if you need help with your whole financial situation, including any assets or debt, you have access to comprehensive advice.^ We can’t wait to hear from you. Book a call-back.
*Financial advice obtained over the phone, or through MemberOnline, is provided by Mercer Financial Advice (Australia) Pty Ltd (MFAAPL) ABN 76 153 168 293, Australian Financial Services Licence #411766.
^Advice is provided by one of our financial planners who are Authorised Representatives of Industry Funds Services Limited (IFS). IFS is responsible for any advice given to you by its Authorised Representatives. Industry Fund Services Limited ABN 54 007 016 195 AFSL 232514.