New temporary minimum annual pension payments due to COVID-19
Over the past few months there has been a change in financial circumstances around the world due to the COVID-19 crisis, which has created a decrease to the account balances of retiree’s superannuation pensions or annuity accounts.
As a result, the Government has decided to reduce the minimum annual pension payments required for transition to retirement pensions (TRIS) and account-based pensions (ABP) by 50% in the 2019/2020 and 2020/2021 financial years.
Superannuation providers calculate the minimum annual pension payments required by using the account balance at the 1st July each year, which the 50% discount will apply too.
Superannuation providers have already made these reductions available to their members now, however if your account is automatically nominated to receive the minimum pension the next financial year your account will default to the new reduced pension minimums as per the table below.
| Age | Past Minimum Pension Withdrawal (%) | Reduced Pension Withdrawal rates by 50% for the 2019-20 and 2020-21 Financial 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 or more | 14% | 7% |
Note: As per the ATO these withdrawal factors are indicative only. To determine the precise minimum annual payment (especially for market linked income streams), refer to the pro-rating, rounding and other rules in the Superannuation Industry (Supervision) Regulations 1994.
If you have any questions regarding your pension payments please contact us on 1300 204 781
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