To reduce the impact of the financial market downturn on retirement savings that are in the drawdown phase (e.g. account-based pensions and transition to retirement pensions), the Government temporarily reduced the pension minimum drawdown requirements by 50% for the 2019/20 and 2020/21 financial years. This has now been extended to 30 June 2023.
These reductions benefit retirees with account-based pensions and similar products by reducing the need to withdraw funds and sell assets 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:
The reduced minimum drawdown rates were applied on Wednesday 25 March 2020 and took immediate affect for the 2019/20 and 2020/21 financial years. From 1 July 2022, the reduced minimum drawdown rates will be extended to 30 June 2023.
You can change you 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.
If you’ve already exceeded the reduced minimum drawdown amount you can also elect not to receive any further payments from your pension account this financial year. However, please note you cannot put any funds you have already been paid above the new minimum back into your pension account.
If you need advice about whether to change your pension payments, please speak to one of our financial planners.
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