Reduction in Minimum Pension Drawdown Rates June 2020

Reduction in minimum
pension drawdown rates

To reduce the impact of the recent financial market downturn on retirement savings (e.g. account-based pensions and transition to retirement pensions), the Government temporarily reduced the pension minimum drawdown rates by 50% for the 2019/20 and 2020/21 financial years. This has now been extended to 30 June 2023. 

These reductions allow retirees with account-based pensions and similar products to reduce the rate of pension withdrawal thereby reducing the amount of assets sold to fund those withdrawals at a time when returns are negative or low. Below are the temporarily reduced rates that apply until 30 June 2023.

Drawdown rates June 2020
How do I change how much I withdraw from my pension?

You can change your pension payment details in the ‘Pension Payments’ section of your online account. To login, please visit eisuper.com.au/login.  You can also complete a Change your Pension Payment form and return it to us by uploading it into your online account or by posting it to EISS Super, GPO Box 7039, Sydney NSW 2001.

What happens to my payments if I don’t do anything?

If you do not make any changes to your pension payment instructions your payments will not change, unless you have elected to be paid the minimum drawdown amount, in which case your pension payment amount would have been reduced to the new minimums shown in the table above.

We're here to help

If you have any questions, please call us on 1300 369 901, Monday to Friday from 8am to 8pm (AEST) and one of the team will be happy to help.

Need advice?

If you need advice about whether to change your pension payments, please speak to one of our financial planners.