On 23 March 2020, the Government passed laws allowing members to elect to receive half the normal minimum drawdown. This reduction has applied to minimum drawdown rates for all account-based pensions, up to 30 June 2023.
No extension was announced at the last Federal Budget, so from 1 July 2023, the Government’s standard minimum drawdown rates apply to all account-based pensions as follows:
If you’re unsure about whether you should be taking any action or you have a retirement strategy in place which used the temporary minimum rate, we encourage you to seek advice. Our financial planners don’t receive any bonuses or commissions, so they only have your best interests in mind.
| Age group | Temporary minimum rate 2019–20 to 2022–23 Financial Years | Standard minimum rate 2023–24 Financial Year onwards |
|---|---|---|
| Under 65 | 2.0% | 4.00% |
| 65 to 74 | 2.5% | 5.00% |
| 75 to 79 | 3.0% | 6.00% |
| 80 to 84 | 3.5% | 7.00% |
| 85 to 89 | 4.5% | 9.00% |
| 90 to 94 | 5.5% | 11.00% |
| 95 or over | 7.0% | 14.00% |
If your income payments were at the temporary minimum rate, or below the standard rate, this change was applied to your account automatically and your income payments were increased.
Please note that if you received fortnightly income payments, your first payment in July was not adjusted. We have therefore recalculated and if required, adjusted your remaining payments to ensure your total income payments for the 2023/24 financial year met the Government’s standard minimum rate.
If you would like to change your payments, you can do it in one of three ways:
Remember that we need to receive your completed change request at least 8 business days before your next payment is due to ensure so we have time to review your account and process your request before the next payment run commences.
