The Federal Government announced today that income stream members can continue to chose a minimum drawdown amount lower than their legislated minimum pension withdrawal for 2011-12.
Generally, income stream members must withdraw a minimum amount of their account balance each year. Since the GFC, the Government has provided some relief by reducing the minimum annual withdrawal amount. This has allowed income stream members to avoid capitalising investment losses generated during the GFC . This has been useful to many AvSuper members with other sources of income in retirement.
For 2011-12, income stream members can now choose to drawdown 75% of their mandated annual minimum.
We will be contacting income stream members in July 2011 with details of their annual minimum withdrawals. AvSuper members who have taken advantage of the drawdown relief during 2010-11 will automatically have it applied to their 2011-12 income stream minimum. These letters will include details on how to adjust your drawdown payments if you wish to do so.
The Government has said that drawdown relief will not be available for the 2012-13 year.