Reduced minimum drawdown rates
In response to COVID-19, the Federal Government has temporarily reduced the minimum Pension payment requirements by 50%. This reduction applies for the 2019/2020 and 2020/2021 financial years.
What are the new minimum drawdown rates?
From 1 July 2020, if you had previously nominated the minimum amount, your Pension payments may be reduced.
Below is an overview of the new minimum drawdown rates for 2019/20 and 2020/21 financial years.
TEMPORARY NEW RATE
|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%|
Market performance and updated drawdown requirements may prompt you to reconsider your pension strategy. However, it’s important to understand how your money is invested before making any changes. Which is why it can be helpful to speak to a financial adviser.
How do I change my pension payment amount?
If you’d like to update your pension payment amount (set a new minimum OR set an amount) you can do so by following these steps:
- Log into your member portal
- Click Change Pension Details
- Select Yes
- Under Payment Amount select either:
- Minimum annual amount and select the frequency you would like to receive
- Nominated annual amount and enter the value and frequency you would like to receive
- Proceed with the remainder of the prompts if they apply to you.
Your updated pension payment amount will apply when your next pension payment falls due. If we are due to make your next payment within 10 working days, we may update your payment amount after this payment.
You can also complete a Change of Details form - Pension form (available on our website) and upload it to the member portal or mail it back to us.
- Scan and upload your completed form in your member portal: Contact us > scroll to the bottom of the page > fill out the details and attach your form
- Post your form back to:
AUSTRALIAN ETHICAL SUPERANNUATION
LOCKED BAG 20013
MELBOURNE VIC 3001
General Pension FAQs
How do I open a Pension account?
Almost anybody can start an Australian Ethical Pension provided they have immediate access to their superannuation benefits in the form of unrestricted, non-preserved money of at least $30,000.
To open a pension account, click here.
Can I make contributions to my pension account?
No. Once you’ve opened a pension account you won’t be able to make any additional contributions to this account.
How are pension payments paid?
Pension payments are made directly into your nominated bank account. These can be paid monthly, quarterly, half-yearly or annually and the payment is made on the 15th of every month.
Your nominated account must be held either in your name or if the account is held jointly, you must be one of the account holders. You’ll need to provide a copy of your bank statement at the time you set up your payment.
How much can I withdraw from my pension account?
You can make a partial withdrawal (over and above your pension payments) or a full withdrawal at any time by completing and returning our withdrawal form.
You can also make withdrawals online through your member portal.
Note: a minimum of $1,000 and a maximum of $10,000 apply to online withdrawals. One withdrawal is allowed per day, and it takes up to 3 working days to process your online withdrawal request.
Call us on 1800 021 227 if you need more information or you’d like us to send you a copy of our withdrawal form.
Do I need to inform Centrelink about my pension payments?
Centrelink needs to know some details about your Australian Ethical Pension to calculate payments, such as the age pension.
We communicate this information directly to Centrelink electronically every February and August. Call us to request a Centrelink schedule.