Aviva has received significant feedback in response to an article published in the Courier Mail on 12 April 2009, relating to potential changes to Transition to Retirement (TTR) pension rules in the upcoming budget.
Aviva has received significant feedback in response to an article published in the Courier Mail on 12 April 2009, relating to potential changes to Transition to Retirement (TTR) pension rules in the upcoming budget.
The article, which outlines the significant benefits of a TTR strategy, references rumours that the government may cease to allow this strategy for new accounts in the upcoming budget. We believe that if changes are made they are unlikely to be retrospective for persons that have already commenced TTR pensions.
Given this potential for change, superannuation investors who are working or self-employed, and who have reached their preservation age (currently age 55) and therefore are able to currently commence a TTR strategy should consider seeking specialist financial advice.
Aviva's Martin Breckon, technical manager, comments: "This has become a very popular strategy with advisers, as it allows eligible persons to reduce their working hours without impacting their cash flow and standard of living, particularly important in these tough economic times. The increase in usage in 2008 led us to implement an automated facility to assist with transferring members from the superannuation to the pension environment as quickly and seamlessly as possible, and we have plans to implement a solution for paying pension payments back to super in the future. Any change to the rules will of course lead to a review of these plans."
Aviva supports the concept of TTR, as research indicates that Australia must have innovative solutions to deal with problems associated with the ageing population.
Mr Breckon notes: "Data from the Australian Bureau of Statistics shows that Australia will gain an additional 2.5 million people aged over 55 by 2020. These people have much to contribute to both the community and their professional lives, and a TTR strategy will increase their capacity to participate in both. It would be a great shame if the government were to disallow this strategy for existing and new superannuation members."
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Martin Breckon is available for interview.
For more information:
Ariana Alvarenga
Public Relations
Phone: (03) 9829 8985
Mobile: 0409 187 487
Sue Voglis
Research & Public Relations Manager
Phone: (03) 9829 8057
Mobile: 0408 309 247
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