avsuper member news

Member number: {member number}

Dear {member},

No doubt you are aware of the COVID-19 pandemic and its impact on investments in Australia.

We are pleased to be able to tell you that the Government has announced some reduced drawdown options for retirees with income streams. This means that you can choose to leave more of your money in your AvSuper income stream account this and next financial year.

What is the reduced drawdown option?

Usually, you must withdraw a minimum percentage of your account each financial year. The exact minimum percentage depends on your age (refer to our website if you are unsure what percentage currently applies to you). For 2019-20 and 2020-21, you can now chose to withdraw half as much.

In fact, if you have already withdrawn at least half of your minimum drawdown this year, you donít have to withdraw any more in the current financial year. You cannot, however, re-contribute any excess amounts into your income stream.

Of course you can continue to draw down on your pension as usual if you so wish.

How to access the reduced drawdowns

First, assess your drawdown needs and decide what percentage of your account you wish to drawdown for the remainder of this financial year.

Reduce payments for 2019-20...

If you would like to reduce your withdrawals to the revised minimum, and probably not get any more payments this financial year, please follow these steps as soon as possible:

  1. log into Member Online
  2. select the 'Income Stream details' heading under 'My account'
  3. select the 'Edit details' button at the bottom of the page
  4. adjust your payments as required (see below)
  5. click the save button
  6. log out of Member Online

To change to the reduced minimum payment and probably not receive payments before 30 June 2020, select 'Minimum payment limit' as the nomination type in step 4

To reduce your withdrawals under the new rule but still get some income this financial year, replace step 4 with the following:

  1. select 'Nominated Fixed Dollar Installment Amount' as the nomination type
  2. enter the amount you want to receive each payment
  3. adjust the frequency of payments if required

If you have already emailed us a request to change your drawdown payments, you do not have to do anything - this will be processed for you and future payments adjusted accordingly.

For 2020-21...

Our system has already noted your revised minimum payment. If you have currently selected to receive the minimum payment amount, this will automatically reduce your 2020-21 payment to the lower rate. You do not have to do anything to receive the reduced amounts from 1 July 2020.

Your annual minimum details letter will provide the option for adjusting your drawdown amount for 2020-21, if you want more than the revised minimum.

AvSuper COVID-19 updates

If you have any questions about your drawdown options or your income stream in general, please contact us  by return email, ask us to call you or call 1300 128 751 and leave a message.

Michelle Wade
Chief Executive Officer

PS Please check our COVID-19 web page regularly as we will add all changes and updates to that page in the coming weeks. Note that our office is unattended but we are working and will respond to all messages as quickly as possible.

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