The government has extended reduced minimum drawdown rates for all account based pensions, to 30 June 2023.
For existing Choice Income or TTR Income members, this means your payment rates will stay the same from 1 July 2022 for the next financial year 2022/23, unless you change your payment options or your balance runs out.From 1 July 2023, the government's default minimum drawdown rates for the 2023/24 financial year will apply to all account based pensions, with no reductions. For details view the section below 'For existing Choice Income or TTR Income members'
Government minimum drawdown rates
| AGE AT 1 JULY EACH YEAR | TEMPORARY MINIMUM DRAWDOWN RATES END 30 JUNE 2023* | DEFAULT MINIMUM DRAWDOWN RATES START FROM 1 JULY 2023† |
|---|---|---|
| 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% |
*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.
†The government's default minimum drawdown rates apply from 1 July 2023, for the financial year 2023/24 onwards
For new Choice Income or TTR Income members
If you open a Choice Income or TTR Income account‡ anytime 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 default minimum drawdown rates for the 2023/24 financial year apply, unless you choose a larger amount.
All Choice Income and TTR Income members can change drawdown amounts anytime via their online account and withdraw extra money when they wish. The maximum withdrawal limit of 10% applies for TTR Income members.
‡Transition to retirement (TTR) can be complex and isn't suited to everyone. It's a good idea to get financial advice before deciding if a TTR Income account is right for you.
For existing Choice Income or TTR Income members
From 1 July 2022, your payment rates will stay the same for the next financial year 2022/23, unless you change your payment options§ or your balance runs out.
You don't have to do anything, unless you choose to change your payment options§. You can do this anytime by logging into your account.
You'll get an email or letter in July every year confirming your payment details for the next financial year.
What happens from 1 July 2023
From 1 July 2023, the government's default minimum drawdown rates for the 2023/24 financial year will apply to all account based pensions, with no reductions. For existing Choice Income or TTR Income members, your payment amounts may increase automatically or stay the same# from 1 July 2023, depending on:
- what payment option you chose up to 30 June 2023,
- what your account balance will be on 1 July 2023, and
- what your age will be on 1 July 2023 and the relevant default minimum drawdown rate for 2023/24. (Refer to table above)
View scenarios below.
#Unless you change your payment options or your balance runs out.§The maximum withdrawal limit of 10% applies for TTR Income members.
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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 options 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 default minimum drawdown rate for 2023/24#; or
- Your payment amount will automatically increase, if your chosen payment amount is less than the default minimum drawdown rate.
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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 2023/24#.
#Unless you change your payment options or your balance runs out.
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If you've opted for Smart Default
If you're aged 80 years and over on 1 July 2023, different Smart Default drawdown rates will apply from 1 July 2023 (see table below).
If you're aged under 80 years on 1 July 2023, the same Smart Default drawdown rate of 6% will apply from 1 July 2023.
You'll get an email or letter every July confirming your payment amounts for the next financial year. You don’t have to do anything, unless you choose to change your payment amount. You can do this anytime 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 2023^ DEFAULT DRAWDOWN RATES START FROM 1 JULY 2023** Under 80 6% 6% 80 to 84 6% 7% 85 to 89 6% 9% 90 to 94 6% 11% 95 and over 7% 14% ^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.
**The default minimum drawdown rates for Smart Default apply from 1 July 2023, for the financial year 2023/24 onwards.For details on Smart Default, view the Choice Income Product Disclosure Statement, or the TTR Income Product Disclosure Statement.
How to check or change your payment amount online
You can change your payment amount any time when you log into your online account.
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How to check your payments via your online accounts
- Log into your account
- Under Manage my account, select Retirement income payments to view Upcoming payments.
- Under the Payment summary section, you’ll find all your account information including your
- Last payment account,
- Last payment date,
- Payments — Year to date
- Payment frequency, and
- Payment type.
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How to change your payment to the Government minimum rate
You can change your payment to the Government minimum rate via your online account:
- Log into your account
- Under Manage my account, select Retirement income payments.
- Select Change my payments. Under Payment type, choose Government minimum and select Save.
- You’ll receive an email or letter to confirm your payments in July every year.
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How to change your payment amount or frequency
You can change your payment amount or frequency via your online account at any time:
- Log into your account
- Under Manage my account, select Retirement income payments.
- Select Change my payments. Choose the Payment type and Payment frequency you prefer, and then select Save.
More information
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What are minimum drawdown amounts?
By law, you must withdraw a minimum income amount each financial year when you have an account based pension such as a Choice Income or TTR Income account.
This minimum amount is calculated as a percentage of your account balance at 1 July each year.
There is no maximum withdrawal limit when you're a Choice Income member; maximum withdrawal limits apply for TTR Income members.
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How can I get my Centrelink schedule?
You can view and download your Centrelink schedule by logging into your online account and selecting the menu option Centrelink Schedule.
A Centrelink Schedule is a document that gives Centrelink information about your account based pension that is used to calculate your Government Age Pension payment under the ‘income’ and ‘assets’ test.
You can also can call us on 1300 300 273 from 8am to 8pm AEST/AEDT Monday to Friday to arrange for us to send you a hard copy in the post.