Temporary Super Pension drawdown relief extended
Retirement

Temporary Super Pension drawdown relief extended

The Government has announced that legislation to allow for the temporary reduction on the minimum drawdown requirements for account-based pensions has been extended for a further year to 30 June 2022.

This extension is intended to help manage the impact on retirement savings during times of financial market volatility. For many retirees, the significant losses in financial markets because of the COVID-19 crisis are still having a negative effect on their account balance. This extension builds on the additional flexibility announced in the 2021-22 Budget. 

The  reduced rates are as follows:

Agestandard minimum drawdown ratesREDUCED MINIMUM DRAWDOWN RATES FOR FY2019/20, FY2020/21 and fy 2021/22

Under 65

4%

2%

65 – 74

5%

2.5%

75 – 79

6%

3%

80 – 84

7%

3.5%

85 – 89

9%

4.5%

90 – 94

11%

5.5%

95 or more

14%

7%

For the 2020/21 financial year 

You’ll automatically be receiving pension payments at the reduced minimum rates, unless you chose to change it,

You can still elect to change your minimum drawdown percentage for the remainder of the 2020/21 financial year by completing step 2 of the Pension Drawdown Election Form. 

For the 2021/22 financial year

You’ll continue to receive pension payments at the reduced minimum rates unless you choose to change it.

If you don’t want to receive the new minimum drawdown rates for the 2021/22 financial year, complete step 3 of the Pension Drawdown Election Form and select your preferred percentage or amount. Return it to us before 30 June 2021.

You can also make changes to your pension payments at any time by completing the Change to Pension Payment Form.

For more information regarding pension payments, please see our  Pension Member Guide.

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