If you are receiving an income stream or annuity you might have noticed, or been advised recently by our office, that your pension has been reduced because of the change in minimum withdrawal amounts set by the federal government.
With the volatility brought by Covid-19, the government introduced a stimulus package back in March which enabled income stream and annuity holders to not have to withdraw as much pension. The minimum pension withdrawal amount for the last financial year (2019/20) and this year (2020/21) has been halved. If you receive your payments quarterly or annually, you have probably only just noticed this reduction.
This reduction means that you do not have to withdraw as much money as previously, however you can continue to withdraw the same amount if you choose. By withdrawing less, you are able to better preserve your balance, and you will not have to crystalise any losses brought by market volatility.
By withdrawing less you can better preserve your balance and avoid crystallising any losses.