There is a recent nab advert with the punchline "A ship in the harbour is safe, but that is not what ships were built for", and so it is for Superannuation Funds upon Retirement.
Once a person has reached that long term goal of the so called accumulation phase [their working life] they should surely have a plan to ENJOY their fleeting Retirement, rather than further accumulation "for the kids' Inheritance".
But sadly many "Little Ozzie Battlers" have been so conditioned to scrimping and saving they find it hard to "change gears" to a spending mode, insisting on drawing down the absolute Minimum amount from their Account Based Pension [aka Allocated Pension].
As I will demonstrate time and time again in this blog, such a strategy not only can lead to unnecessary hardship [in the autumn of one's life] but in most cases REDUCES any claim on a Centrelink Aged Pension.
Put simply, if your Drawdown is less than the interest the fund is generating then you are not technically drawing down at all, but simply accumulating at a reduced rate, and that Increased Capital simply sets you up to LOSE money from Centrelink [ie a Lose-Lose situation]. That is particularly so for the new Deeming Rules [aka Non Grandfathering Rules] starting 1 January 2015.
Please read my Posts to see how this works but even easier, please get a Free Assessment for your own particular situation.