Pension rates halved for 2019/2020

TL;DR

The Australian Government is reducing the minimum amount that needs to be withdrawn from superannuation funds for two years, allowing people to leave more money in their accounts during the current economic downturn caused by the coronavirus.

Transcript

today and welcome to this week's video this week we're going to have a look at some of the fallout from the corona virus and the impact that's had on the share markets and how the Australian Government have put into action some some packages that can help people get through this time from a financial point of view so in this video we're going to lo... Read More

Key Insights

• ❓ The Australian Government is implementing measures to support individuals financially during the coronavirus pandemic.
• 🤑 By reducing the minimum withdrawal amount from superannuation funds, individuals can leave more money in their accounts during the economic downturn.
• 🚟 Excess pensions cannot be credited back into the member account.
• 🤕 Individuals over the age of 65 can contribute back into superannuation if they meet the eligibility rules.
• 😘 Withdrawing money from superannuation during a market downturn may result in selling units at lower prices, which is not ideal.
• 🛄 The measures implemented aim to provide financial relief and stability during this challenging period.
• 💱 It is important for individuals to check their own superannuation brackets and understand the changes.

Questions & Answers

Q: What is the purpose of reducing the minimum withdrawal amount from superannuation funds?

The purpose is to allow individuals to keep more money in their superannuation accounts during the economic downturn caused by the coronavirus, instead of having to withdraw it when the share market is heavily affected.

Q: Can individuals who have already taken the minimum withdrawal amount stop their monthly payments?

Yes, individuals who have already taken the minimum amount can stop their monthly payments and recommence them in the next financial year.

Q: Can excess pensions that have already been taken be credited back into the member account?

No, any excess pensions that have already been taken cannot be credited back into the member account.

Q: Can individuals over the age of 65 contribute back into superannuation?

Individuals over the age of 65 need to meet the eligibility rules in order to contribute back into superannuation.

Summary & Key Takeaways

• The Australian Government is implementing measures to help individuals financially during the coronavirus pandemic.

• They are temporarily reducing the minimum amount that people need to withdraw from their superannuation plans by 50% for the 2019-2020 and 2020-2021 financial years.

• This allows individuals to keep more money in their superannuation accounts instead of withdrawing it during the current economic crisis.