COVID-19 and temporarily reducing pension minimum drawdown rates
Retirement

COVID-19 and temporarily reducing pension minimum drawdown rates

The Government has introduced legislation to allow for the temporary reduction on the minimum drawdown requirements for account-based pensions.

This change is intended to help manage the impact on retirement savings during times of financial market volatility - as we’re currently experiencing. 

The new reduced rates are as follows:

Agestandard minimum drawdown ratesREDUCED MINIMUM DRAWDOWN RATES FOR FY2019/20  AND FY2020/21

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 2019/20 financial year 

You can elect to change your minimum drawdown percentage for the remainder of the 2019/20 financial year by completing step 2 of the Pension Drawdown Election Form. 

Alternatively, you can do nothing and continue to receive your pension payments as per the standard minimum drawdown rates in the above table, or per your current instructions if you receive more than the standard minimum.

For the 2020/21 financial year

If you’ve elected to receive the minimum drawdown amount allowed under government legislation, you’ll automatically receive pension payments at the new reduced minimum rates, even if you chose to stay on the standard rates in 2019/20. 

If you don’t want to receive the new minimum drawdown rates for the 2020/21 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 2020.

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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