The Australian Government has extended measures brought in to help retirees through the COVID-19 crisis.

Lower minimum income rate…

If you hold an account-based pension or similar product, you need to withdraw a certain amount each financial year – this is called your minimum income amount. The Government reduced this amount by 50% during the last year.

The lower rate has now been extended until 30 June 2022 so Australian retirees can continue to receive a lower income if they wish. It minimises the need to sell down assets in markets that remain depressed.

Here are the minimum pension drawdown rates for 2021-22.

Age Default minimum income (%) Reduced minimum income for 2021-22 (%)

Under 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 more  14  7

The lower rates are not compulsory, so you can choose to receive a higher payment if you prefer. But if you’ve chosen to receive the minimum income amount, this will continue to apply. 

It’s a good idea to check your current pension payment arrangement before making any changes. If you’re an AMP client, you can do this by logging into My AMP

If you’d like to change your pension payment amount, frequency or date, you can:

..and deeming rates

Meanwhile, the Government has retained lower deeming rates for 2021-22, while increasing the asset thresholds at which they apply1. These lower deeming rates were brought in during 2020 to help Australian retirees through the COVID-19 crisis.


Status Thresholds 2020-21 Thresholds 2021-22
Deeming rates
Single First $51,800 First $53,600
Balance over $51,800 Balance over $53,600
In a couple, at least one pension
First $86,200 First $89,000
Balance over $86,200 Balance over $89,000
In a couple, no pension
First $43,100 First $44,500
Balance over $43,100 Balance over $44,500

Deeming rates apply as a way to check if you’re eligible for the age pension and other entitlements. Deeming assumes you earn a certain income from your investments, regardless of how much you actually earn. It means any Government payments you receive remain steady, rather than fluctuating depending on how your investments are performing.

Deeming can provide an incentive to invest, as any extra amount you earn above the deeming rate doesn’t count as income.

Next steps

If you’re looking to make the most of your retirement income, here are plenty more tips about how to retire right.


Complimentary retirement health check

If you’re a SignatureSuper, CustomSuper or AMP Flexible Super member, you may also like to arrange a call with one of our retirement specialists to discuss your super and retirement. To learn more and book in a chat, visit our info page.

Important information

Any advice on this webpage is provided by AWM Services Pty Ltd ABN 15 139 353 496, AFSL No. 366121 (AWM Services) and is general in nature only. It doesn’t consider your personal goals, financial situation or needs. It’s important you consider the appropriateness of any advice and read the relevant product disclosure statement, before deciding what’s right for you.

The retirement health check is provided by ipac Securities Limited ABN 30 008 587 595, AFS Licence No. 234656 (IPAC) to eligible members in the Super Directions Fund and is a general advice conversation only. IPAC is a wholly owned subsidiary of AMP. Products in the Super Directions Fund are issued by N.M. Superannuation Proprietary Limited (N.M. Super) ABN 31 008 428 322 (trustee), which is part of the AMP group.

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