In response to COVID-19, the Government halved the minimum pension drawdown rates for the 2019-20 and 2020-21 financial years. Last month, the Government announced that the reduced rates will be extended for a further year, until 30 June 2022, in an effort
to support retirees by giving them more choice and flexibility.
If you’re a pension-account holder and currently receive the minimum annual drawdown amount, your payment in the new financial year will remain at the current reduced rates. The minimum amount from 1 July 2021 is determined by age as outlined in the table below.
| Age | Default minimum drawdown rates (%) from 1 July 2021 |
| Under 65 | 2 |
| 65-74 | 2.5 |
| 75-79 | 3 |
| 80-84 | 3.5 |
| 85-89 | 4.5 |
| 90-94 | 5.5 |
| 95 or more | 7 |
Once we know members’ balances at 30 June 2021, we’ll work out the new pension payment amounts. We’ll write to pension-account holders in July to confirm their new pension payment details for the 2021-22 financial year.