Support for retirees during COVID19
An economic downturn is here.
The Australian Government is responding to the needs of retirees who are relying on their superannuation to fund their current and future needs.
As of March 22, 2020, they have announced a temporary reduction to the minimum amount a retiree is required to withdraw. In fact, they've reduced it by 50%. The last time this measure was taken by the Government was during the 2008 global financial crises.
The temporary reduction will help to make sure that a retiree is not forced to sell off more shares during a time that they have lost significant value during the current March 2020 quarter.
So, if as at the current date during this financial year you have a pension account and haven't yet withdrawn your minimum requirement, you have an option to adjust your plans on how much you need to withdraw.
If, however, you've already withdrawn your minimum requirement prior to this announcement, you are NOT allowed to repay this back into your superannuation account. This would likely count as a contribution and if you're not allowed to do so (because of your age or account balance), then this could cause you more headaches then it's worth.
For a full list of the pension minimum factors, please take a look at the link below and note these are the figures PRIOR to applying the 50% temporary discount.