Treasurer Josh Frydenberg’s promise to millions of Aussies

As many Australians battle with the cost of living, Treasurer Josh Frydenberg is making a big promise to one group of people.

Josh Frydenberg has sharpened his pre-budget pitch with two major announcements targeted to older Australians.

The federal government will extend the 50 per cent temporary reduction in superannuation minimum drawdown requirements for account-based pensions and similar products.

Under Australia's superannuation arrangements, retirees are required to withdraw a minimum amount each year.

It’s designed to encourage well-off individuals to use their super fund rather than keeping their nest egg in savings with a tax break.

The upcoming budget will extend the reduction in the minimum super drawdown requirements for another year.

But during financial instability, drawing down on super funds could speed up the process and eat up too much of the savings that are supposed to last.

With the unfolding situation in Ukraine, paired with the pandemic, the Treasurer will extend the measure for a second time.

First introduced during the pandemic, it was extended in May last year and was due to expire on June 30.

Mr Frydenberg said the commitment would give “certainty” to retirees.

“This will provide retirees with greater flexibility and certainty over their savings,” Mr Frydenberg said.

“We recognise the valuable contribution self-funded retirees make to the Australian economy and the sacrifices they made to provide for their retirement.”

Josh Frydenberg said it would give retirees more certainty. Picture: Gary Ramage

Around 1.8 million super accounts are subject to the minimum drawdown rule.

It comes after news.com.au reported that pensioners were expected to benefit from a one-off cash splash from the government.

The $250 cash bonus is expected to also be provided to low income families that rely on income support.

It’s not clear if retirees on a part-time pension will qualify for the money.

Mr Frydenberg’s renewed charm offensive on older Australians follows Newspoll’s latest demographic analysis that revealed voters over 65 were the only group supporting the Coalition ahead of an expected May election.