Q&A: What can we do with excess funds if we need less than the minimum pension amount?

Q: I am about to transfer all our accumulation funds into income funds for retirement income as we are now retiring. Our combined minimum drawdown at 4% will be more than what our living expenses will be, so I am exploring options to put the left over dollars. My options appear to be retaining an accumulation fund to deposit these funds, or simply invest them. What options there are for these additional funds (around $40K per year) and how to then access these additional funds and when?

A: Thanks, Chris for asking the question. Look, I don’t have a magic solution here. It’s an issue that many people face. One of the issues we’ve looked at over the last couple of years (during COVID19 temporary rule changes), we’ve only ever had to take out half the normal pension requirements. Now we’re obviously back to full requirement to draw down pension.