Allocated Pensions

Allocated Pensions

An allocated account-based pension is an efficient vehicle to convert your superannuation funds into an income stream once you reach retirement. There are minimum amounts per year that are required to be drawn down and at any stage you can withdraw lump sum amounts (up to your balance after retirement). Allocated account-based pensions derive efficiency from the tax treatment of earnings. From 60 years of age onwards any earnings within the account-based pension are tax free. Alternatively if you withdraw your funds out of your superannuation and put it into a term deposit or invested in property your earnings would be taxed at your marginal tax rate.

Allocated account-based pensions can also be used as a tool in conjunction with a superannuation fund to create tax efficiencies in a transfer to retirement (TTR) strategy.

Depending on your preservation age (contingent on what year you were born) you can start accessing your super funds before you fully retire. Depending on your age this can be tax free access or you can get a tax rebate on what you withdraw (minimum withdrawals apply). These features that have been introduced enable us to set up strategies that can provide tax efficiencies to help you ensure that your funds in retirement are maximised.

At Stevens Roberts we can determine the most optimal strategy in an allocated account-based pensions for your individual situation and can implement the strategy for you.

To find out more, speak with one of experienced Financial Advisers on 08 8223 3774 or complete our online form here  
Alternatively you can send us an email