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Self Managed Account Based Pensions
Account based pensions
are the most popular way to receive superannuation benefits in retirement.
Their popularity can be attributed to their particular tax efficiency and
income flexibility. In simple terms, an
account based pension is an income stream paid to a member that is funded out
of the member’s superannuation account, into which investment earnings
are credited. It is not unlike a passbook savings account, except that
investment earnings and capital gains are tax exempt. The pension continues
for as long as the member has a credit balance in their account or until the
member dies, in which case any remaining balance is paid to a nominated
beneficiary. Each year, the member must choose within the legislative minimum
and maximum, the amount of the pension for that year. The maximum pension
that can be taken in any one year is 100% of their account balance except
when taking a Transition to Retirement Income Stream when the maximum is 10%
of the account balance. Account based pensions
can only be paid by a superannuation fund. To commence an account
based pension one must be necessarily eligible to receive their superannuation
benefits - normal preservation rules apply. Therefore, to access ones
benefits one would need to:
Unrestricted Benefits are
benefits not subject to preservation rules and can, therefore, be accessed at
any time. A person may start an account based pension with their unrestricted
benefits at any time. Should you wish to
commence receiving your benefits in the form of an account based pension, we
will:
For contact
information, click here. |