Capital losses for self-funded retirees
The federal government will extend a 25% discount on the minimum pension rules for self-funded retirees, in a move which may see some older people forced to put retirement on hold. Brisbane’s The Courier-Mail reports many of Australia’s 125,000 self-funded retirees have been warned to expect another year of capital losses as the European debt crisis worsens.
The federal government will extend a 25% discount on the minimum pension rules for self-funded retirees, in a move which may see some older people forced to put retirement on hold.
Brisbane’s The Courier-Mail reports many of Australia’s 125,000 self-funded retirees have been warned to expect another year of capital losses as the European debt crisis worsens.
Based on Treasury advice, the move may see super funds “go backwards” another year, and will reportedly be the fifth year the government has reduced minimum draw-downs.
“Many self-funded retirees with account-based pensions incurred significant capital losses on their portfolios as a result of the global financial crisis,” assistant treasurer, Bill Shorten, says.
“Continuing the current limited draw-down relief for a further year will assist retirees to recoup capital losses on their pension portfolios as equity markets recover over time,” he adds.
According to The Courier-Mail, 24,000 Queenslanders will be affected by the changes that will see them draw down a minimum of 75% of their normal pension in the next financial year.
