Reducing pension payments
Minimum drawdown requirements for account-based pensions will be temporarily reduced by 50 per cent.
As part of its COVID-19 response, the Government is temporarily reducing superannuation minimum drawdown requirements for account-based pensions by 50 per cent for both 2019-20 and 2020-21 financial years. This measure is intended to reduce the need to sell investment assets to fund minimum draw-down requirements.
More detailed information about reduced minimum drawdowns can be found on the ATO website.
What are the minimum income amounts?
Your annual pension payments must be at least the minimum limit set by the Federal Government. The limit applicable to you is determined by your age, your annual pension account balance, and the Government’s minimum payment percentage.
The table below shows the Government’s minimum payment percentage and the minimum annual payment for each $100,000 of your pension account balance for the 2020/21 financial year.
|Age||Minimum percentage to receive as income||Minimum amount to receive as income per $100,000|
|95 or older||7%||$7,000|
If you do not make a choice, we will pay you the minimum once a year in June for that financial year. If a pension is commenced prior to 1 June in a year, the minimum amount is pro-rated by the number of days between date of commencement and the following 30 June.
What you need to do
We understand that making changes to your Pension account can be complex, and our Client Service Managers are on standby to help you.
To make changes to your drawdown payment, log in to MemberAccess and select the minimum payment. In the 'Your Account’ section, navigate to ‘Pension Details' and ‘Edit Details’. You will need to update the drawdown amount in dollar nomination value and then submit your request. Your payment will then be reduced for the financial year.
Calculating your new pension amount may be complex, if you need help call us on 1800 060 312 and a Client Service Manager will be able to assist.
If you haven't used MemberAccess before, you can register with your member number which can be found on your legalsuper Annual Statement. Click here to register for a secure online account.
If you have already received more than the reduced minimum, you cannot put the money back into your pension account. You will automatically start on the reduced minimum in the next financial year from 1 July 2020.
For help over the phone, call us on 1800 060 312 and ask to speak with a Client Service Manager who can guide and support you with making this change to your account.
This is general information only and does not take into account your individual objectives, financial situation or needs. Accordingly, before taking any action, you should consider whether it is appropriate to you, having regard to your objectives, financial situation and needs. You should obtain a copy of legalsuper’s Product Disclosure Statement (PDS) which is available by contacting legalsuper or via its website at legalsuper.com.au before making a decision.