Over the weekend, the Australian Government announced its economic support package to help Australians who are under financial stress as a result of the Coronavirus.
One of the support measures announced includes temporarily reducing minimum pension payment requirements for retirees.
Here’s what you need to know and how you can apply. Please note: The exact timing of these measures will depend on the passage of the relevant legislation. The information below is based on the Government’s announcement.
Please note: We are experiencing higher than usual call volumes and extended wait times. We apologise for any inconvenience. If you need to speak with us, we will do our best to get back to you in a timely manner. We provide a range of online information, resources and self-service options for members available here.
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TEMPORARY REDUCTION OF MINIMUM PENSION PAYMENTS
To provide retirees with more flexibility in managing their retirement incomes, the Government has announced it is reducing the minimum pension payment requirement for account based pensions and similar products by 50% in both 2019-20 and 2020-21.
► WHO IS ELIGIBLE?
- All account based pension holders.
► BY HOW MUCH CAN I REDUCE MY PENSION PAYMENTS?
- The amount by which you can reduce your pension payment will depend on your age:
|NEW minimum annual
pension payment for
2019-20 and 2020-21
|65 – 74||5%||2.5%|
|75 – 79||6%||3%|
|80 – 84||7%||3.5%|
|85 – 89||9%||4.5%|
|90 – 94||11%||5.5%|
- Minimum percentages are calculated on account balance at commencement of pension and at start of each subsequent financial year.
► HOW DO I REQUEST TO REDUCE MY PENSION PAYMENTS?
If you worrying about protecting your superannuation pension balance during these trying times this could be a very good option in the short term.
Our bucket strategy will assist us in not drawing down on growth assets for quite awhile.
Please contact us if you want to know how this works or you want to take advantage of this option for the next 2 years.