Minimum 50% Drawdown of pensions is set to end

Financial Planner

By Erryn Langley

The ATO has reminded all retirees and SMSF trustees that the temporary 50% reduction in the minimum annual payment amounts for account-based pensions/annuities and similar products will not be extended to the 2023-24 financial year.

The temporary reduction of minimum pension drawdown rates was initially implemented to address the financial strain faced by retirees during the height of the pandemic. As the world grappled with the economic impact of lockdowns and restrictions, retirees faced reduced income and uncertain financial futures. In recognition of this hardship, governments sought to provide immediate relief by allowing individuals to draw down a lower minimum percentage of their pension savings, typically 50% of the standard rate.

However, as economies recover and financial markets stabilize, the need for these reduced drawdown rates diminishes. Governments and financial authorities have closely monitored economic indicators and assessed the prevailing circumstances to determine the appropriate time to revert to the prepandemic minimum pension drawdown requirements. The decision to end the temporary 50% drawdown rates reflects this evaluation and signals a return to a more normal pension landscape.

This means the minimum annual drawdown for 2023/24 will return to standard rates, as shown in the table below: is advice that can be obtained to help retirees navigate their retirement years. The temporary 50% minimum pension drawdowns, implemented as a response to the economic challenges of the COVID-19 pandemic, are set to end. If you are not sure how this change will impact your pension, future goals and longevity risk e.g., having enough in retirement, then consider having a review of your situation with an award-winning financial advisor from Find Retirement. You can call 1300 88 38 30 or email info@ findretirement.com.au to organise a free, no obligation meeting, to discuss your retirement needs.

It might not seem an ideal time to increase the minimum drawdown rates given economic conditions and market performance have not improved as one had hoped since the pandemic. In fact, some might say it has worsened, with the cost of living increasing. It is hoped that retirees can expect more stable returns on their investments in the future, enabling them to meet their retirement needs without relying on reduced drawdown rates.

It is important to note that the decision to end temporary drawdown reductions does not imply a lack of support for retirees. Governments and financial institutions remain committed to ensuring the financial security and well-being of retirees. Individuals can still access various resources and seek guidance on managing their pensions effectively. Pension providers can continue to offer a range of investment options and there

Erryn Langley

1300 557 144 | erryn@findwealth.com.au www.findwealth.com.au

Financial Planning is offered via Find Wealth Pty Ltd ACN 140 585 075 t/a Find Wealth. Find Wealth is a Corporate Authorised Representative (No 468091) of AllianceWealthPtyLtdABN93161647007(AFSLNo.449221).PartoftheCentrepoint Alliance group https://www.centrepointalliance.com.au/

Erryn Langley is Authorised representative (No.1269525) of Alliance Wealth Pty Ltd.

This information has been provided as general advice. We have not considered your financial circumstances, needs or objectives. You should consider the appropriateness of the advice. You should obtain and consider the relevant Product Disclosure Statement (PDS) and seek the assistance of an authorised financial adviser before making any decision regarding any products or strategies mentioned in this communication.

Whilst all care has been taken in the preparation of this material, it is based on our understanding of current regulatory requirements and laws at the publication date. As these laws are subject to change you should talk to an authorised adviser for the most up-to-date information. No warranty is given in respect of the information provided and accordingly neither Alliance Wealth nor its related entities, employees or representatives accepts responsibility for any loss suffered by any person arising from reliance on this information.

Lactation Consultant

By Dr. Joanna Strybosch

Domperidone, sold under the brand name Motilium, is a prescription medicine generally used for nausea and vomiting. However, in lactating mothers it is also used off-label to aid breastmilk production. It is used in cases of low supply and when extra breastfeeding or expressing are not enough to increase milk supply.

Domperidone belongs to a class of drugs known as dopamine antagonists, and it primarily works by blocking the dopamine receptors in the brain. Dopamine is a neurotransmitter that inhibits the release of prolactin, a hormone responsible for milk production. By blocking dopamine receptors, domperidone increases prolactin levels, thereby promoting lactation.

The use of domperidone in breastfeeding mothers with low milk supply has gained popularity due to its potential to enhance milk production. It is often prescribed when other non-pharmacological methods, such as frequent breastfeeding, proper latch, and adequate hydration,