Part 7 of our article on Pre Retirement from our 7 part Pre Retirement Series
You’ve worked hard to accumulate as much as you can in super, and now it’s time to reap your reward – you can now “turn the tap on” and generate an income from your superannuation, which is called an Account-Based Pension.
Every year you will need to withdraw a minimum pension payment, which will be calculated according to your age. (For example, between ages 65-74 you need to withdraw at least 5% p.a. of your balance as a pension).
There is no maximum payment amount which needs to be drawn each year (unless the pension was commenced as part of a transition to retirement pension).
Your Account-Based pension account can hold a range of investments – including shares, fixed interest, cash and managed investments – depending on the investments offered by your fund.
- Lump sum and pension payments from your Account-Based pension are tax-free once you turn 60.
- The earnings from investments in your account are tax-free. These tax-free earnings remain in your account and increase the account balance.
- You can access your money whenever you need it.
- If you are balancing your Account-Based pension income with other income sources, you are able to vary the amount of income you receive and the frequency and timing of each payment, depending on your changing needs.
(However, the specified minimum payment, according to your age, must be taken each year).
Financial Stability can tailor-make a retirement plan just for you, to meet your specific needs and goals.
Crystallise your future…..take control.
Financial Planning Information
The information on this website is provided for general information only, it is not advice. It has been prepared without taking into account your particular financial needs, circumstances and objectives. You should consult your financial adviser before making any investment decisions.