Minimum drawdown rates

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

Minimum drawdown rates stay reduced for 2022/23

The government has extended the temporary reduced minimum drawdown rates to 30 June 2023 for the financial year 2022/23. 

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 minimum drawdown rates for the 2023/24 financial year onwards will revert to the default rate. (See table above)

 

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.

How to check or change your payment amount online

You can change your payment amount any time when you log into your online account.

More information

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