Reduction to minimum pension drawdowns extended to 30 June 2022

Getting ready for retirement

The Federal Government has announced that the reduced temporary minimum pension drawdown amounts – the minimum mandatory sum you must withdraw from your pension account each year – have been extended until 30 June 2022.

The government temporarily halved minimum drawdown amounts in March 2020 in response to the COVID-19 pandemic. This was introduced to allow pension members to withdraw less of their retirement savings and keep a greater amounted invested.

These temporary minimum amounts were due to return to standard levels from 1 July 2021; however, on 29 May 2021 the government advised temporary minimums would be extended.

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 prior to March 2020

Temporary reduced minimum yearly payment (for the 2019-20, 2020-21 & 2021-22 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 happens in the new financial year

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 your new minimum amount for the financial year.

If your payment type is listed as a ‘nominated’ amount, and this amount falls below your 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 the decision to extend these changes and how it may affect your retirement savings and income.

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