As a result of the downturn in financial markets, the Government has announced a 50 per cent reduction in the minimum drawdown requirement for account based pensions for the 2008-09 financial year. This will apply to account-based Allocated Pensions including Transition to Retirement and Term Allocated Pensions.
This change may allow you to keep more of your wealth fully invested in the tax advantaged superannuation environment and may reduce or postpone the need to sell assets at these lower prices.
To take advantage of these changes and reduce your pension drawdowns you will need to contact your pension provider.
JUNE UPDATE
In the Goverment’s 2009-10 budget it has been proposed that the existing pension draw down relief (established for the 2008-09 year detailed above) be extended for the 2009-10 financial year.