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The temporary reduction to superannuation minimum drawdown requirements has been extended to 30 June 2022.
In its 2020 economic response to the coronavirus, the Australian Government announced a temporary reduction to superannuation minimum drawdown requirements for account-based pensions (such as QSuper’s Income account) and similar products for 2019-20 and 2020-21.1
It has been extended for a further year to 30 June 2022.2
You can control how much you pay yourself each year from your Retirement Income account or Transition to Retirement Income account, but you need to receive at least a minimum amount which is set by the Australian Government.
The Government announced in March 2020 it was reducing the minimum drawdown requirement by 50% for account-based pensions and similar products for the 2019-20 and 2020-21 financial years.
Then in May 2021, the Government extended the reduction to the 2021-22 financial year. It said the extension would continue to make life easier for retirees by giving them more flexibility and choice in their retirement.
The temporary reduction to the minimum drawdown rate is scheduled to expire on 30 June 2022.
Your minimum payment amount is a percentage of your Income account balance as at the start of the financial year, or the date your Income account started, if later.3
Here are the minimum payment percentages that apply to 30 June 2022.
Minimum payment amount for 2021-2022 financial year
95 or older
It’s easy to change your payment amount. Simply log in to Member Online and click on ‘Change Income Payment’. Alternatively you can fill in this form.
With regards to your regular payment, you could choose to receive a:
The intent of this legislation change is to provide retirees with more flexibility during this period of market volatility. The change means retirees can choose to leave more of your retirement savings invested over a longer period, meaning that you are able to keep more in your account as markets recover. This measure was also put in place during the GFC.
You can download the Providing support for retirees factsheet from treasury.gov.au.
As a QSuper member you have access to over-the-phone financial advice. Personal financial advice may help you save money right now, build a better future retirement, protect what you have and set strategic goals.4
Find out more
1. Treasury, October 2020, Factsheet: Providing Support for Retirees, Economic response to the Coronavirus, Retirees at treasury.gov.au
2. Media Release, Prime Minister, 29 May 2021, Supporting Retirees With Extension Of The Temporary Reduction In Superannuation Minimum Drawdown Rates, at pm.gov.au
3. If you open your Income account partway through a financial year, your minimum payment will be a pro rata amount based on your full annual payment. The exception to this is if you open your Income account in June, in which case you don’t have to receive a payment until 30 June of the next financial year.
4. Deciding what is best for you will depend on your personal circumstances and you may want to seek personal financial advice to get the most from your superannuation. You can find out more about financial advice options at qsuper.qld.gov.au/advice
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