As Investment markets continue to be extremely volatile due to the Coronovirus pandemic, pension assets are largely affected with some pensioners likely to withdraw more than their portfolios are currently earning in total return terms. This means that most pensioners could be drawing down capital at this time.
To that end, the Government will reduce the required legislated minimums by 50%. Meaning, if you’re required to draw 4% as a minimum pension requirement, this could now be reduced to 2%.
How does it work:-
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To access this change, you only need to contact your superannuation provider to reduce the minimum required
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If you commenced your Account-based pension from 1 July 2019, receiving a monthly pension then you’re likely to have received most of your pensions already. To reduce to the minimum pension is likely to stop any further pension payments prior to June 30, 2020.
When can I access this?
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You’re able to access this reduction immediately.
How does this impact me?
Your pension requirement has been matched to your income needs. It is likely that any reductions may impact your cashflow needs. We’d strongly recommend you consult with your Advisers first before making any such change.
