The government announced changes to superannuation rules as part of the COVID-19 stimulus package announced in March, however the recent changes to rules may leave many older Australians financially disadvantaged.
Dropped minimum drawdown rates mean some retirees may have their superannuation pension payments slashed by half from 1 July.
Current superannuation arrangements mean that Federal Government requires retirees who are collecting on their super to withdraw a minimum amount every year.
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The goal is for those who have more money to gradually use up their super rather than keep on enjoying generous tax breaks.
This process can be counterproductive in times of crisis as pensioners may eat away at their nest eggs.
The changes allow fund administrators to automatically reduce payments to the minimum amount set out in the legislation.
