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Temporary changes -
minimum pension payments

In response to the COVID-19 pandemic, the Government announced some temporary changes which include reductions in the minimum pension drawdown rates.

For account-based pensions and transition-to-retirement pensions, there’s a temporary 50 percent reduction in the minimum drawdown requirements for the 2019/20, 2020/21 and 2021/22 financial years. You can see what percentage factor applies to you in the table below. This measure is designed to assist retirees by reducing their need to sell investments to meet minimum drawdown requirements when market prices may be under pressure.

Your age
Default minimum percentage of account balance (%)
Reduced minimum percentage of account balance (%)1
Under 65 4 2
65-74 5 2.5
75-79 6 3
80-84 7 3.5
85-89 9 4.5
90-94 11 5.5
95 or more 14 7

1The reduced minimums are available for the 2019/20, 2020/21 and 2021/22 financial years. The minimum may be subject to change from time to time.

FAQs for MLC Members

  • If you receive the minimum pension payment, we’ll automatically apply the reduced minimum from 1 July 2020.

    This means, from 1 July 2020, your pension payment will be based on the new reduced minimums (%) so you’ll receive a lower pension payment. If you’d like to change your pension payment, you can do this by calling us, calling your adviser, or completing an update your account details form.

    Note: If you joined MLC on or after 4 April 2020 and chose to receive the minimum amount for pension payments, this reduced minimum rate would’ve already been applied in the 2019/20 financial year.

  • Yes. However, the minimums are determined differently to those in the table above for account-based pensions. We recommend that you call us or your adviser for more information.

  • Nothing. Unless you decide to change your pension payments, you’ll continue to receive the amount you’ve chosen.