COVID-19: REDUCTION OF MINIMUM DRAWDOWN REQUIREMENTS

There is not a lot of constructive action you can take when the markets are falling and you are watching your retirement savings fall alongside - but as we have previously mentioned, one thing that can help is to reduce drawings and relieve some pressure on falling balances. The government is now providing you with that option.

The superannuation minimum drawdown requirements for 2019/2020 and 2020/2021 will be reduced by 50% - please see table here: /static/uploads/files/pension-rates-wfolobxiwutc.pdf  

This means that even those that are taking the minimum required amount, can decrease their withdrawals further if they want.  If you are in the position where you can live on a bit less per month, then please contact us in order to have your monthly income reduced. We know that this won't be an option for everybody. 

For speed of processing, it would be best to email through the request with your pension provider (i.e. ASGARD, BT), your current pension amount and the amount you would like to have it reduced too (you could halt payments completely for the remainder of 2019/2020 potentially). 

Please call if you want to discuss your position. 

Note that Centrelink are also reducing deeming rates further - the new deeming rates will be applied to your files automatically from 1st May 2020 and will have an effect for anybody assessed under the income test. 

AMR 

 

Information contained on this web page is of a general nature only and your personal financial position, objectives or needs have not been considered.  Please ensure you have the necessary financial, tax and legal advice before acting on this information.  Do not rely upon it when making financial decisions.