Son helping his father
Son helping his father

COVID-19 FAQS: Temporary reduction of superannuation minimum drawdown requirements 

 

1. Can you explain the government changes?

The Government is temporarily reducing superannuation minimum drawdown requirements for Account-Based Pensions and similar products by 50 per cent for the 2019-20 and 2020-21 financial years.

This measure will benefit retirees with Account-Based Pensions and similar products by reducing the need to sell investment assets to fund minimum drawdown requirements. The reduction applies for the 2019-20 and 2020-21 income years.

If you decide not to take any action, your Pension payments will remain as they are. Your payments will not change unless you tell us you advise us.

Temporary reducing superannuation minimum drawdown requirements

2. I don't want to reduce my Pension minimum drawdown amount - what do I need to do?

1. Nominate your new Pension payment amount by logging into your online account and editing your current withdrawal details on the ‘Withdrawals’ page. Please note you cannot elect an amount below the minimum payment
Or
2. Download and complete the Pension Variation form. Return the completed form to: Mercer Super Trust - Allocated Pension Division, GPO Box 4303, Melbourne, VIC 3001

3. When will I see the changes on my account?

We’re currently updating all accounts to include the new minimums amounts. If you have requested a change to your payments, you will see these updates and receive a confirmation, once complete.

4. What happens if I don’t want to change my drawdown rate?

If you don’t want to change your minimum drawdown amount, you don’t need to do anything. Your pension payments will continue at their current amount for the rest of this financial year.

5. Will I still get my pension payments?

If you have already received more than your updated minimum amount, you have the following options

  • Stop your regular payments until next financial year; or
  • Receive any remaining payments at the new minimum rate; or
  • Continue to receive your payments as scheduled

6. What happens from 1 July?

The reduced minimum amounts will be used to calculate your payments in the 2021/2020 financial year. If you have told us that you want to receive the minimum each year, this change will be applied automatically from 1 July.

If you have told us you want to receive the maximum amount permitted for Transition to Retirement pensions, or that you are receiving a nominated amount (for example your payments are increased by the CPI rate, where your pension allows), you will continue to receive these payments.

7. What are the new minimum drawdown amounts for the 2019-20 and 2020-21 financial years?

Age

Previous rate

New rate

Under 65

4%

2%

65 to 74

5%

2.5%

75 to 79

6%

3%

80 to 84

7%

3.5%

85 to 89

9%

4.5%

90 to 94

11%

5.5%

95 and over

14%

7%

 

Latest information on COVID-19 

We’ve created a COVID-19 hub to help you navigate these uncertain times. Here you’ll find the latest information on the changes to super, market updates, FAQs and much more.

 

Contact Mercer Super AU for all of your superannuation and financial planning queries.

Mercer Super Trust: 1800 682 525, +61 3 8306 0900
Pension: 1800 671 369, +61 3 8306 0906

8am - 7pm (AEST/AEDT), Monday - Friday




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