A decision by the Federal Government to temporarily relax taxation rules regarding minimum withdrawals will bring relief to self funded retirees affected by the global financial situation.
The rules require self funded retirees to withdraw between four and 14 per cent (depending on age) from their superannuation account each year. The government decision will mean the withdrawal rate will be halved this financial year.
The temporary relaxation in the rule will mean those self funded retirees who have already withdrawn at least half of their minimum pension for the 2008/09 financial year will not require to withdraw any further amounts for the remainder of the financial year. It’s hoped this will help self funded retirees who have been forced to sell investments to meet their requirements.
What does the government decision mean for you?
Every individual is different and as with every financial decision it’s important to act. Contact Davenports Financial Solutions so we can review your situation and provide accurate advice and recommendations. Our goal is to help you maximise your superannuation so that you can enjoy the most financially comfortable retirement possible.