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 and 2020/21 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.
||Default minimum percentage of account balance (%)
||Reduced minimum percentage of account balance (%)2
|95 or more||14||7|
1For the 2020/21 financial year, this is based on your age at 1 July 2020, or, if you commenced your pension during this financial year but after 1 July, it is based on your age on the day you commenced your pension. For future financial years, your age at each subsequent 1 July will determine your minimum pension payment for the year.
2The reduced minimums are available for the 2019/20 and 2020/21 financial years. The minimum may be subject to change from time to time.
FAQs for Plum Members
If we determine that you’re currently on the minimum drawdown rate, from 1 July 2020, we’ll apply the reduced drawdown rate to your pension payments. This means you’ll receive a lower pension payment from 1 July 2020.
Note: If you joined Plum 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.
If you have further questions, or you’d like to change your pension payment amount, you can contact us at any time.
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.