Drawdown rates for your income payments
When you have an AustralianSuper Choice Income or TTR Income account, every financial year you’ll need to withdraw a minimum amount. The amount is set by the government, is based on your age and increases as you get older.The government has applied reduced minimum drawdown rates for all account-based pensions, up to 30 June 2023.
However, from 1 July 2023, the government's standard minimum drawdown rates, will apply to all account-based pensions:
| AGE AT 1 JULY EACH YEAR | TEMPORARY MINIMUM DRAWDOWN RATES END 30 JUNE 20231 | STANDARD MINIMUM DRAWDOWN RATES FROM 1 JULY 20232 |
|---|---|---|
| Preservation age to 64 | 2% | 4% |
| 65 to 74 | 2.5% | 5% |
| 75 to 79 | 3% | 6% |
| 80 to 84 | 3.5% | 7% |
| 85 to 89 | 4.5% | 9% |
| 90 to 94 | 5.5% | 11% |
| 95 and over | 7% | 14% |
1 The government's temporary minimum drawdown rates for the financial years 2019/20, 2020/21, 2021/22 and 2022/23 started on 25 March 2020 and will end on 30 June 2023.
2 The government's standard drawdown rates apply from 1 July 2023, for the financial year 2023/24 onwards
Changes to minimum drawdown rates
Changes to minimum drawdown rates
The government has applied the temporary reduced minimum drawdown rates to 30 June 2023. This government measure started in March 2020 in response to COVID-19's impact on investment markets. Reduced minimum rates give you the option to manage your income payments differently during difficult times.
From
1 July 2023, this temporary reduction ends, and the government’s standard
minimum drawdown rates will apply for the 2023/24 financial year.
New Choice Income or TTR Income members
If you open a Choice Income or TTR Income account before 30 June 2023, the government's temporary reduced minimum rates apply up to 30 June 2023, unless you choose a larger amount.
If you open a Choice Income or TTR Income account from 1 July 2023 onwards, the government's standard minimum drawdown rates for the 2023/24 financial year apply, unless you choose a larger amount.
As a Choice Income or TTR Income member, you can change your drawdown amounts any time, by logging into your online account. For TTR Income members, a maximum withdrawal limit of 10% will apply.
Existing Choice Income or TTR Income members
Your payment rates will stay the same for the 2022/23 financial year, unless you change your payment options3 or your balance runs out.
Every July, you'll receive an email or letter confirming your payment amounts for that financial year. You don’t have to do anything, unless you choose to change your payment amount3. You can change your payment options, by logging into your account online.
What happens from 1 July 2023
From 1 July 2023, the government's standard minimum drawdown rates will apply to all account-based pensions, with no reductions. Learn how this change may affect your income payments, by viewing the scenarios below:
3 The maximum withdrawal limit of 10% applies for TTR Income members.-
If you’re getting reduced minimum payments up to 30 June 2023
Your payment amount will automatically increase from 1 July 2023 to meet the higher default minimum drawdown rate for 2023/24, unless you change your payment option, or your balance runs out. -
If you’ve chosen your own payment amount up to 30 June 2023
- Your payment amount will stay the same from 1 July 2023 if your chosen payment amount is the same or greater than the standard minimum drawdown rate for 2023/244; or
-
Your
payment amount will automatically increase to the new minimum, if your
chosen payment amount is less than the standard minimum
drawdown rate.
-
If you have a TTR Income account and you're getting maximum payments up to 30 June 2023
Your total annual payment amount will remain 10% of your account balance in 2023/244.
4 Unless you change your payment options or your balance runs out.
-
If you've opted for Smart Default
Every July, you'll receive an email or letter confirming your payment amounts for that financial year. You don’t have to do anything, unless you choose to change your payment amount
You can change your payment options, by logging into your account online.
Smart default option – Percentage of your balance you’ll receive each year Your age on 1 July TEMPORARY DRAWDOWN RATES END 30 JUNE 20235 STANDARD DRAWDOWN RATES START JULY 20236 Under 80 6% 6% 80 to 84 6% 7% 85 to 89 6% 9% 90 to 94 6% 11% 95 and over 7% 14% 5 The temporary Smart Default drawdown rates are for the financial years 2019/20, 2020/21, 2021/22 and 2022/23, and end 30 June 2023
6 The standard minimum drawdown rates for Smart Default apply from 1 July 2023, for the 2023/24 financial year.For details on Smart Default, view the Choice Income Product Disclosure Statement, or the TTR Income Product Disclosure Statement.
See or make changes to your income payments
Check or change your income payment amount or frequency at any time, by logging into your online account and going to Transactions and then selecting Income payments.