The Government originally introduced the reduction in minimum drawdown levels for the 2019-20 and 2020-21 years as part of its economic response to the coronavirus, reducing the need for retirees to sell down investment assets during a period of significant volatility in financial markets. These temporary changes were due to return to standard levels from 1 July 2021; this has now been deferred until 1 July 2022.
The following table highlights the previous standard and new temporarily reduced minimum payment rates.
|Age||Previous (standard) rate||Temporarily reduced rate for the 2019-20, 2020-21 and 2021-22 financial years|
|65 to 74||5%||2.5%|
|75 to 79||6%||3%|
|80 to 84||7%||3.5%|
|85 to 89||9%||4.5%|
|90 to 94||11%||5.5%|
|95 and over||14%||7%|
The new minimum and (where applicable) maximum payment rates for Income Account members are reset at 1 July each year, based on your age and account balance at that time. Members with Income Accounts are notified of these details and any changes to their regular payments.
If your payment is set to the minimum, your payment will automatically be adjusted to the (temporarily reduced) minimum amount from 1 July based on your account balance and age. If you have nominated a specific dollar amount that is less than the new minimum amount, it will automatically be adjusted to the new minimum.
You can change the amount you receive from your Income Account at any time: