23 March 2020
Pension minimum draw down changes
On 12 March the government announced changes to account-based pensions that may benefit members who have an allocated pension, or a non-concessional allocated pension. The changes temporarily reduce superannuation minimum drawdown requirements by 50% for the 2019-20 and 2020-21 income years. This means if you would prefer to take a lower amount of pension, you can do so:
|Age||Default minimum drawdown rates||Reduced rates by 50% for the 2019-20 and 2020 -21 income years (%)|
|95 or more||14||7|
With the recent announcement you are entitled to make a change to your income payments for the new minimum or any specified amount up to the maximum. Any change you decide to make now will only apply for this financial year.
Please note: you are NOT compelled to change anything – if you don’t want any change simply do nothing and your pension will continue to make your nominated payments to you.
Making a change
Changes to pension income limits can be made in the following ways:
- Call our Contact Centre on 1300 017 589 and advise one of our consultants that you would like to make a change. You will need to advise them of the new payment amount and the consultant will arrange for the change to occur, or
- Email us at firstname.lastname@example.org advising us of your change. Please include your name, member number, address, date of birth and specify the amount of your new payment within the new limit.
If you don’t want to make a change to your pension payment schedule there is no need to take any action.
General advice warning
This letter includes general information and does not contain any personal advice. It is provided for general information only, to help you understand the Pension drawdown changes. The information does not take into account your personal objectives, financial situation or needs. You should consider whether it is appropriate for you and your personal circumstances before acting on it and, if necessary, you should seek professional financial advice.
The government is also reducing both the upper and lower social security deeming rates by a further 0.25% in addition to the 0.5% reduction to both rates announced on 12 March 2020. The new rates apply from 1 May. If you are entitled to an Age Pension, this may reduce your income for the purposes of the Age Pension income test, which may increase your pension. You can find more details online at Services Australia.
We’re here to help
If there is anything, we can do for you or you would like any further information about your Vision Super membership, please call our Retirement Hotline on 1300 017 589 between 8.30am and 5.00pm Monday to Friday. Or you can email us anytime at email@example.com.