Press Release
22 March 2011

Global events impetus for retiree drawdown concession

News today that super funds are taking a hit on the back of current global events has renewed calls from seniors to extend the minimum drawdown concession on allocated pension accounts into the new financial year.

Super Ratings figures released this morning show that the Japan earthquake, tsunami and nuclear crisis have taken super fund balances down 2%, erasing January and February market gains.

National Seniors chief executive, Michael O’Neill, said that while the setback is considered short-term by analysts, it’s a blow for retirees.

“Seniors had asked the government to extend the drawdown concession because even though super funds were on the up, many were still a long way off pre-GFC levels,” he said.

“Now, events in Japan and the Middle East are adding impetus to these calls”.

“It’s one step forward and two steps back for retirees watching their super balances,” he said.

“With investments still on the mend, older Australians are afraid to dip into their nest eggs unnecessarily,” said O’Neill.

The minimum drawdown requirement has been halved since the 2008-2009 financial year. As a retirement fund vehicle with significant tax concessions, minimum payments from superannuation account-based pensions are required at least annually.

Minimum payments are determined by age and account value.

Michael is available for comment.

With a quarter of a million members Australia-wide, National Seniors is the consumer lobby for the over 50s. It is the fourth largest organisation of its type in the world.

Media Enquiries: Sarah Saunders 0409 055 156