| Age on 1 July 2022 | Default minimum drawdown rate (% of account balance) | Reduced minimum drawdown rates for 2019-20, 2020-21, 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 |
| Age on 1 July 2022 | Younger than 65 |
| Default minimum drawdown rate (% of account balance) | 4 |
| Reduced minimum drawdown rates for 2019-20, 2020-21, 2021-22 and 2022-23 (% of account balance) | 2 |
| Age on 1 July 2022 | 65-74 |
| Default minimum drawdown rate (% of account balance) | 5 |
| Reduced minimum drawdown rates for 2019-20, 2020-21, 2021-22 and 2022-23 (% of account balance) | 2.5 |
| Age on 1 July 2022 | 75-79 |
| Default minimum drawdown rate (% of account balance) | 6 |
| Reduced minimum drawdown rates for 2019-20, 2020-21, 2021-22 and 2022-23 (% of account balance) | 3 |
| Age on 1 July 2022 | 80-84 |
| Default minimum drawdown rate (% of account balance) | 7 |
| Reduced minimum drawdown rates for 2019-20, 2020-21, 2021-22 and 2022-23 (% of account balance) | 3.5 |
| Age on 1 July 2022 | 85-89 |
| Default minimum drawdown rate (% of account balance) | 9 |
| Reduced minimum drawdown rates for 2019-20, 2020-21, 2021-22 and 2022-23 (% of account balance) | 4.5 |
| Age on 1 July 2022 | 90-94 |
| Default minimum drawdown rate (% of account balance) | 11 |
| Reduced minimum drawdown rates for 2019-20, 2020-21, 2021-22 and 2022-23 (% of account balance) | 5.5 |
| Age on 1 July 2022 | 95 or older |
| Default minimum drawdown rate (% of account balance) | 14 |
| Reduced minimum drawdown rates for 2019-20, 2020-21, 2021-22 and 2022-23 (% of account balance) | 7 |
You can nominate a specific percent to be taken out of each investment option so it’s not all coming from one place. For example, if you have money invested in two investment options, you may want 40% of your payments to come out of investment option X and 60% to come out of investment option Y.
Simon is 66 and holds $150,000 in his account on 1 July 2022. Based on his age, he must take out a minimum of 2.5% of his account balance each year which he does through monthly payments of $312.50. Simon has requested that 20% of this amount comes from his Balanced investment option and the remaining 80% from his Cash option.
You can select a withdrawal order. For example, you may select investment option X as your first option to draw from and investment option Y as your second choice. This means all payments will initially be taken out of X. Once the money is gone from this option, it will come out of your second choice, Y. All of your investment options need to be included as part of your withdrawal order.
Helen is 75 and has $500,000 in her account on 1 July 2022, invested within the Bonds and Core Strategy investment options. Under the pension payment rules she must take out 3% of her account balance. She's selected Bonds as her first choice to draw her payments from with the Core Strategy as her second choice. This means her pension payments (and all other withdrawals, fees and costs) will be withdrawn from her Bonds investment option until the money is gone, at which time it will be drawn from her Core Strategy option.
Are you looking for ways to maximise your retirement with super? Find out how an account-based pension works, and how Rest can help you set yours up today.
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Most of us don’t like talking about death or thinking that someone close to us is going to pass away one day. But it’s helpful for loved ones to be more prepared and know what to expect in case something unexpected happens to you.
