If you have a pension, or a transition to retirement account, the government have introduced a temporary relief measure of reducing the minimum drawdown payment amounts which could be of benefit to you.
This relief measure was introduced as part of the government's response to the impacts of COVID-19 on investment markets in a bid for retirees, or those close to retirement, to manage the impact of volatile financial markets on their retirement savings. This change gives you the choice to preserve more of your capital while investment markets continue reacting to the pandemic.
What are the new minimum drawdown amounts?
The minimum drawdown amounts have been reduced by 50% for the 2019-20, 2020-21 and 2021-22 financial years.
| Age | Default minimum drawdown rates (% of member balance) | Reduced rates for FY 2019-20, FY 2020-21 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% |
*maximum withdrawal limits apply to TTR members.
What does this mean for REI Super members?
Financial year 2019-20
For REI Super pension, and transition to retirement members who wish to adjust their pension payments in-line with the new reduced drawdown rates can do so via online.
If you do not want to access the new reduced minimum then no further action is required for this financial year.
Financial year 2020-21 and 2021-22
For the 2020-21 and 2021-22 financial year, you will automatically continue to receive the reduced minimum drawdown rate from your pension.
Don’t want to access the new reduced minimum, or want to choose an alternate rate?
You should either call our Helpline on 1300 13 44 33 or login to your member account and adjust your drawdown amount via the withdrawal page.
Given every member’s needs and requirements are different, before making changes to your drawdown amounts, we recommend you seek financial advice.