What do I need to know about the reduced minimum drawdown?30 Jun 2020 2 min read
As part of the government’s COVID-19 stimulus package, the minimum drawdown on account-based pensions (your Income or Transition to Retirement account) has been reduced by 50%, for the 2019/20 and 2020/21 financial years.
What happens if I’m already receiving the minimum?
From 1 July, your payment amounts will automatically reflect the new minimum (that is, up to 50% less) based on your age and account balance on that date. We will write to you early in July to let you know what your new pension amount will be. If you wish to retain the dollar value of your current drawdown, you will need to nominate that value. Follow the instructions in our Pension drawdown information sheet (page 3: Payment amounts for the 2020/21 financial year).
What if I want to receive more than the reduced minimum?
You will need to let us know. You can find full details of how to change your preferences in the instructions. Follow the instructions in our Pension drawdown information sheet.
Can I receive less than the current minimum, but more than the 50% reduced amount?
Yes, you can do that.
You can choose any amount that is equal to or more than the reduced minimum. To change your payment amount, follow the instructions in our Pension drawdown information sheet.
What if I want my payment amounts to remain the same?
If you are currently receiving an amount different to the minimum drawdown amount, your payments will be unchanged. If you are currently receiving the minimum drawdown amount and do not wish your payments to be reduced from 1 July 2020, follow the instructions in our Pension drawdown information sheet.