Turning 60 doesn’t have to be all bad – sure, you have to throw a party and put up with a lot of old-age jokes, but for those with superannuation fund accounts, there are a few possibilities you may wish to consider.
Most importantly, the tax concessions available to pensions are well worth considering. Members who are over 60 are not taxed on pension payments from their fund, and the income from your assets in your pension fund are not taxed within the fund either.
Members need to meet a condition of release before beginning a pension, including:
- Reaching preservation age and retiring.
- Reaching preservation age and beginning a transition-to-retirement income stream.
- Turning 65.
A transition-to-retirement income stream means that you can start a pension without retiring, and still be able to make contributions to superannuation (subject to various contribution caps).
You should always make sure you consider all your financial and estate-planning considerations before considering starting a pension.
If you are interested in learning more about pensions, contact us any time.
Contributed by David Gow