Minimum pension drawdowns increasing on 1 July

Getting ready for retirement

Minimum pension drawdown amounts – the minimum mandatory sum you must withdraw from your pension account each year – will be increasing from 1 July 2021.

It’s important to be aware of these changes and how they may affect your pension payments so you can take action if needed.

Drawdown rates for 2021-22

The Federal Government temporarily halved pension drawdown amounts in March 2020 for the remainder of 2019-20 and the full 2020-21 financial year in response to the COVID-19 pandemic. This allowed pension members to withdraw less of their retirement savings and keep a greater sum invested if they wished.

Drawdown amounts will return to standard levels from 1 July 2021.

The full set of standard and temporary rates for each age group are outlined in the table below:

Age

Minimum yearly payment as a percentage of account balance as at 1 July 2021

Temporary reduced minimum yearly payment (for the 2019-20 & 2020-21 income years)

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+

14%

7%

What you need to do

Each year on 1 July your new minimum and maximum (if applicable) limits are recalculated using your new age and account balance. We will send you a letter after 1 July as usual, that will outline your new minimum amount and your current payment option. It will also give you the opportunity to nominate a new payment amount if you choose.

In early July, if your pension payment is listed as ‘minimum’ we will automatically adjust it to the new minimum amount for the financial year. Usually this is a small adjustment but this year, due to the temporary reduction ending, that may see your payment amount increase quite significantly.

If your payment type is listed as a ‘nominated’ amount, and this amount falls below the new minimum for 2021-22, you’ll automatically be brought up to the minimum amount.

If your nominated amount is higher than the minimum, it will stay the same, unless you decide to change it.

You can change your Media Super pension payment amount and frequency at any time by completing a Request to vary pension payment form or by logging into your account online and heading to the 'Payment' page.

Please visit the Pension payments page to learn more about minimum drawdowns, additional withdrawals, frequency and more.

We’re here to help

We understand you may have questions about these changes and how they may affect your retirement savings and income.

If you have any questions about the minimum pension drawdown amounts for 2021-22, changing your pension payments or any other questions about your account, please call the Helpline on 1800 640 886.