Temporary reduction to minimum pension drawdown rates

The Federal Government has temporarily reduced the aged-based minimum drawdown rates on Account-Based Pension Plans by 50%.

The aim of the measure is to allow members to better manage their pension payments during the current period of market volatility due to the COVID-19 pandemic.

This change will benefit members by reducing the need to sell investment assets during this period to fund minimum drawdown requirements.

The new temporary aged-based minimum drawdown limits are shown below:

AgeCurrent minimum drawdown percentage of your account balanceNew temporary minimum drawdown percentage of your account balance
Under 65 years 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 years and over       14% 7%

Frequently asked questions

Will my pension payments be automatically reduced?

For the 2020/21 financial year, if you have elected to receive the minimum, your payments will be set at the new minimum rate.

How do I change my pension drawdown limit for the current financial year?

You have two options to change your limit:

  1. Log in to Member Online, and select the Pension details tab, and nominate the amount you wish to receive and the frequency. This is the quickest and easiest method and occurs straight away.
  2. You can change your pension payment amount by completing the 'New pension election' form.

What will be the impact of reducing my pension payment amount?

Reducing your pension payments will help you to retain more investment assets in your account. However, it will reduce your overall regular income.

Before you reduce your pension amount, you should be confident that you will have enough money from your pension and any other sources of income to live on and meet your regular financial obligations.

If you are unsure about reducing your pension payments, you can request a phone appointment with one of our financial planners.

The information on this website is of a general nature only and does not take into account your personal objectives, situation or needs. You should consider obtaining professional financial, taxation and or legal advice tailored to your personal circumstances prior to making any financial decision.