What do I need to know about the reduced minimum drawdown?05 Aug 2021 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) was reduced by 50%, for the 2019–20 and 2020–21 financial years. The government has extended this initiative for the 2021–22 financial year.
|Minimum percentage factor (indicative only) for each age group|
|Age||Minimum % withdrawal||Reduced rates by 50%
for the 2021–22 financial year
|95 or more||14%||7%|
What does this mean for me?
The impact of this extension depends on your personal circumstances.
I’m already receiving the reduced minimum amount
You will continue to receive the reduced minimum amount in the 2021–22 financial year. If you would like to receive more, you can change your payment amount through Member Online or by completing a Request to vary your income stream payments form.
I elected the minimum amount with the intention of receiving the usual (higher) minimum amount
You will automatically receive the reduced minimum amount based on your age and account balance on 1 July. If you want to receive a higher amount, you will need to let us know. You can nominate a dollar amount through Member Online or by completing a Request to vary your income stream payments form.
I already receive a nominated dollar amount (not the minimum)
This arrangement will continue, unless you choose to change it. Otherwise, your payments will remain unchanged.