To reduce the impact of the recent 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 superannuation minimum drawdown rates by 50% for the 2019/20 and 2020/21 financial years, effective from 25 March 2020.
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. The temporarily reduced rates for the 2019/20 and 2020/21 financial years are as below:
As previously communicated on our website on 17 April 2020, the reduced minimum drawdown rates were applied on 25 March 2020 and took immediate affect for the 2019/20 and 2020/21 financial years. The new rates will be used for any requests made to reduce pension payments to the minimum from 25 March 2020.
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.
We will endeavour to process requests as soon as they are received, but due to high demand, this may take a little longer than normal.
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.
To find out more about the Government’s economic response to Covid-19, visit treasury.gov.au/coronavirus.
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.
If you need advice about whether to change your pension payments, please speak to one of our Financial Planners.
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