Minimum pension drawdown rates are changing

The temporary reduction in minimum pension drawdown rates introduced by the Federal Government in response to the COVID-19 coronavirus pandemic will end on 30 June 2023. Minimum rates will return to the default (pre-COVID-19) amounts as of 1 July for all existing and new accounts.

This change may impact you if you have an:

• RI Allocated Pension
• RI Term Allocated Pension or
• Transition to Retirement Pension account

Background information about the initiative

The initiative was first introduced for the 2019/20 and 2020/21 financial years to help retired Australians manage the financial impact of the COVID-19 coronavirus pandemic. It was later expanded for the 2021/22 and 2022/23 financial years.

Temporary default rates were reduced by 50%, meaning Retirement Income members could drawdown half of the default minimum amount required for their age group.

The lower minimum drawdown rates were automatically applied to existing Retirement Income Pension accounts and new accounts opened from 25 March 2020 onwards, where the minimum payment amount was selected.

Minimum drawdown rates for all existing and new accounts will return to pre-COVID-19 amounts as of 1 July 2023.

Minimum drawdown rates as of 1 July 2023

The table below shows the current temporary rates and the default rates which will apply from 1 July 2023.

The rates below do not apply to RI Term Allocated Pension accounts. To discuss RI Term Allocated Pension payments, please call us on 13 43 72.

What does this mean for you?

You can change your pension payments at any time

To change your pension payment amount, complete the relevant 'Change of details' form below:

• If you have an RI Allocated Pension or a Transition to Retirement Pension, please submit a Retirement Income Pension change of details and pension payment variation form
• If you have an RI Term Allocated Pension, please submit a Change of details and pension payment variation - RI Term Allocated Pension form

When you fill out the form, you can nominate an amount by ticking the 'Other' box in Section 2 and choosing the income amount you'd like  to receive per payment. Choose a date starting from, or after, 1 July 2023 in Section 3.

If you have an RI Term Allocated Pension account and would like more information about your payment options, please call us on 13 43 72  before submitting the form.

Example of how these changes may apply

This table shows 'Chris' who is 60 years old and has $200,000 invested in a Retirement Income Pension. His pension amounts for both the 2022/2023 and 2023/24 financial years are calculated using the minimum annual pension payment.