As a result of significant declines in financial markets, the government has announced a reduction of 50% to the minimum pension requirements for the 2019/20 and 2020/21 financial years to assist retirees to preserve their capital and not be forced to sell more assets in the downturn.  For example, if your minimum percentage was 5%, it is now 2.5%.  This is a reduction in the minimum pensions amount only – you are still allowed to draw more!

This may mean you have already withdrawn your minimum pension for the current financial year and so can therefore cease withdrawing further funds…if you want to.  If you normally only make one withdrawal towards the end of the financial year, you are now only required to withdraw half the amount previously advised.

This link to the ATO website gives a good summary of the new measures and provides some examples to assist in understanding how it operates.

Please contact us at any time.