The temporary minimum pension drawdown rates are being extended

The reduced minimum pension drawdown rate is announced to be extended into the 2022-23 financial year.

What is the pension drawdown rate?

Each year, you’ll need to take out a minimum amount from your account-based pension as a form of income. This is usually a percentage of your starting balance on 1 July of the current financial year and the exact amount usually depends on your age at that date.

This minimum rate had been in place since 1 July 2019.

So, what are the new pension drawdown rates?

Below are the temporary minimum withdrawal amounts for Rest Pension Retirement and Transition to Retirement account members.

Your age on 1 July or commencement of pension*

Default minimum drawdown rate (% of account balance)

Reduced minimum drawdown rates for 2021-22 and 2022-23 (% of account balance)

Younger than 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 older 14 7

*If your Rest Pension starts part-way through the year, your minimum payment is pro-rated.

Is your investment strategy right for you? 

Just answer some short and simple questions with our Investment Choice Solution and we’ll recommend how your money held with Rest should be invested.