What happens to your Super when you retire?
When you retire, you can either take your super out as a lump sum, or even better, convert it into a pension account to provide you with ongoing income and security.
Your pension account = ‘Super in reverse’
Think of a pension account as 'Super in reverse'. During your working life, your super account balance grows steadily by investing it wisely and also by adding regular employer contributions and optional payments.
When you retire, if you convert your super into a pension account, your money can still be invested but you receive regular pension payments from your account to provide you with an ongoing, steady income.
A pension account is a flexible, tax effective way to control your income and investment options in retirement, or while making a gradual transition to retirement.
Tax Advantages of a Pension Account
A pension account can offer you considerable tax advantages - you could defer lump sum tax if you're under 60, remove tax on investment earnings and receive a rebate on annual pension payments.
Note, that when you receive retirement savings as a pension you may still be eligible to receive the government's age pension and other social security benefits.
We offer TWO types of pension accounts:
1. Pension
- Once you retire, convert your super into a regular tax effective income.
- Choose the frequency of your payments.
- Make lump sum withdrawals at any time.
If you are over 55 and still working, you can think about a Transition to Retirement strategy - the benefits are outstanding and seriously worth considering!
- Ideal for those who move to part time work before they retire or those who continue to work full time after the age of 55
- Supplement your reduced salary or to fund lifestyle choices if working full time
The type of account you choose can have a significant impact on such things as taxation and your entitlement to an age pension. It's a good idea to get professional financial advice before deciding which type of pension account is best for you.
Contact us
Need more information? Contact us or call 1300 963 720.