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Temporary reduction in minimum pension drawdown rates extended

  

Temporary reduction in minimum pension drawdown rates extended

The Federal Government has extended the temporary reduction in superannuation minimum drawdown rates for an additional year to 30 June 2022. This applies to account-based pensions, transition to retirement pensions and similar products.

The extension of these reduced rates for the 2021/22 income year provides retirees with further support, flexibility and choice in retirement.

The extended temporary minimum drawdown rates for the 2020/21 income year are as below:

Age
Temporary Rates
Regular Rates
Under 65 2.0% 4.0%
65 to 74 2.5% 5.0%
75 to 79 3.0% 6.0%
80 to 84 3.5% 7.0%
85 to 89 4.5% 9.0%
90 to 94 5.5% 11.0%
95 and over 7.0% 14.0%

When do the reduced rates take effect?

Superannuation minimum drawdown rates were first reduced by 50% for the 2019/20 and 2020/21 income years as part of the Government’s response to the Coronavirus pandemic. The extended temporary minimum drawdown rates continue to apply for the 2021/22 financial year.

What do you need to do?

If you currently receive the minimum pension payment and wish to continue receiving the reduced minimum pension amount, there is no action required. Alternatively, you can nominate your pension payment amount by:

  • Logging into your online account and changing your pension payment amount in the Pension Payment section. 
  • Completing the Change Your Pension Payment form and returning it to us by uploading it into your online account, or by posting it to EISS Super, GPO Box 7039, Sydney NSW 2001.
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.