The government announced last week that the minimum payments from pensions would fall by 50%. Retirees are trying to use this new flexibility but are in limbo until the exact changes are confirmed by regulators which could take weeks.
The government announced last week that the minimum payments from pensions would fall by 50%. Retirees are trying to use this new flexibility but are in limbo until the exact changes are confirmed by regulators which could take weeks.
Tim Cobb, Aviva's general manager of marketing and public relations, said: "Customers are ringing up every day to change their pension payments. All we can say is that the new minimums are still to be confirmed. We already have the flexibility to allow customers to suspend pension payments until the uncertainty ends but that is clearly not as good as a one-off change to a new minimum level.
"The changes aren't complex if you have flexible technology and our pensions team is ready to implement them today. We're just waiting on the government. It was a sensible decision by Senator Sherry but it is frustrating for our customers that we can't implement it yet," said Mr Cobb.
Aviva will this week send advisers a list of all their pension clients that could benefit from the new changes with template letters and a guide to the changes.
"We're trying to make the process as seamless as possible and to ensure that no-one misses out. Customers who do not need all their pension income at once should seek advice and seriously consider suspending their payments. If they take more than the minimum payment out then they cannot go back and reverse their decision," said Mr Cobb.
-ends-
Tim Cobb is available for interview.
For more information:
Ariana Alvarenga
Public Relations
Phone: (03) 9829 8985
Mobile: 0409 187 487
Disclaimer
This news release has been provided on the basis that it is only for the information and exclusive use of the particular person to whom it is provided by Aviva (Aviva Australia Holdings Limited ABN 38 095 045 784 and its related companies). While Aviva believes the information in this news release is accurate which in some cases has been provided to us by third parties, Aviva is not making any representation as to the accuracy, reliability or completeness of the information in the news release. Neither Aviva, nor its directors, officers or employees will have any liability to you or any persons resulting from your use of the information in this news release.
The information in this news release is of a general nature and has been prepared without taking into account any person's particular investment objectives, financial situation or particular needs. Applications to invest in a financial product issued by any company within the Aviva group must be made by completing the application form attached to or accompanying the applicable Product Disclosure Statement which is available from Aviva or your financial adviser. Aviva does not receive any remuneration in relation to the provision of the information available from this news release which is of a general nature only.