The current market downturn has highlighted the need for legacy defined benefit pensions to shift to more modern alternatives.

Advisers should keep in mind the existing “pecking order” for taking benefit payments exceeding the minimum pension when applying the government’s new reduced minimum pension measure, an SMSF technical expert says.

The reduction in minimum pension drawdown amounts will have a greater impact in the next financial year, but trustees should be planning for it in the near future.