The Australian Government sets a minimum pension drawdown rate that is based on your age at the time of opening your account, and then on 1 July each year. This percentage rate is known as the minimum pension factor.
The minimum amount you must withdraw from your pension account during the financial year is calculated using your pension factor and account balance.
Minimum drawdown amounts apply to Allocated Pension, Term Allocated Pension and Transition to Retirement Pension accounts*.
During the 2020/21, 2021/22 and 2022/23 financial years the Government temporarily reduced minimum drawdown rates on account-based pensions by 50%. However, from 1 July 2023 the relief will be withdrawn, and minimum drawdown rates will return to their default level.
This means that there is likely to be an increase to the minimum amount you must withdraw from your pension account for the 2023-24 financial year.
Refer to the table below to find the minimum pension factor for your age.
If you have an existing Pension account, you can calculate your new minimum pension payment amount by applying this percentage to your Pension account balance on 1 July of the new financial year.
If your Pension account was opened after 1 July, the minimum rate is pro-rated based on the number of days left in the financial year and applied to the opening account balance. If you open your account in June, there is no minimum payment for that financial year.
|Age||Reduced minimum pension factor effective until 30 June 2023||Default minimum pension factor effective from 1 July 2023|
When your new minimum drawdown amount is calculated at the start of every financial year, you may find you need to increase you regular pension payments.
You can easily do this through Member Online:
You can also call us on 1800 444 396 to make the change.
* A maximum drawdown rate of 10% applies to Transition to Retirement (TTR) Pension accounts.