Income Stream accounts: temporary changes to minimum drawdown rates extended until 30 June 2022

ESSSuper - 10 Jun 2021

In our Changes in legislation article (dated 12 March 2021) we advised that from 1 July 2021 the temporary reduction to minimum drawdown rates (mandated by the Federal Government in its response to COVID-19) would revert back to the minimum drawdown rates that applied prior to 1 July 2019.

On 29 May 2021 the Government announced an extension of the reduced minimum drawdown rates for account-based income stream products for a further year to 30 June 2022. It's expected this measure will continue to benefit you by reducing the required minimum pension payment from your investment option(s) to fund income stream payments.

What are the minimum drawdown rates?

The table below shows the minimum drawdown rates that applied prior to 1 July 2019 and the temporary minimum drawdown rates for different age brackets:

We're here to help

We're contacting all ESSSuper Working Income Stream and Retirement Income Stream members to inform them of this change. They can elect the drawdown rate appropriate to them at any time.

Our expert Member Education Consultants can provide you with information and general advice on our products. If you would like to discuss your personal needs, objectives, and financial situation, our Financial Advisers^* can help.

If you have queries about how these changes may impact you, please contact us.

^* ESSSuper Financial Advisers are authorised representatives of Link Advice Pty Ltd (Link Advice). Link Advice holds a current Australian Financial Services Licence No. 258145 and is responsible for the financial services provided to you. ESSSuper has an arrangement with Link Advice Pty Ltd to provide financial advice to ESSSuper members. ESSSuper pays Link Advice a fee for this service. Neither the Board, nor the Victorian Government, guarantee or endorse any recommendations made by Link Advice, or are responsible for the advice and actions of Link Advice.

Benefits in ESSSuper's Accumulation Plan, Income Streams and Beneficiary Account products are not guaranteed or underwritten by the Victorian Government or ESSSuper, and ESSSuper does not come under the jurisdiction of the Australian Financial Complaints Authority. ESSSuper comes under the jurisdiction of the Victorian Civil and Administrative Tribunal.

Emergency Services Superannuation Board (ABN 28 161 296 741) (ESSB), the Trustee of the Emergency Services Superannuation Scheme (ABN 85 894 637 037) (ESSSuper).

The information contained in this article is of a general nature only. It should not be considered as a substitute for reading ESSSuper's Product Disclosure Statement (PDS) that contains detailed information about ESSSuper products, services and features. Before making a decision about an ESSSuper product, you should consider the appropriateness of the product to your personal objectives, financial situation and needs. It may also be beneficial to seek professional advice from a licensed financial planner or adviser. An ESSSuper PDS is available at esssuper.com.au/pds or by calling 1300 650 161.