Superannuation Q and As

Trish Power (author of Superannuation for Dummies and DIY Super for Dummies) answers readers’ questions on super.

Set out below are all SuperGuide articles explaining Superannuation Q and As.

Turning 55: Taking super, tax and timing

Pixmac000015634589_clock_timing

Q: If at 55, I take up to $185,000 out of my super as a lump sum tax free, when I turn 60 will I be able to draw down as a lump sum the rest of my superannuation without having to pay tax as well? A: For an individual to access preserved super benefits they must satisfy a condition of release, … [Read more...]

I’m under 60. Does my super payout also affect my other income, and tax bill?

Pixmac000079686405_dominoes_affect

Q: I have tried to phone the ATO re this query. Could you tell me the answer to this question? I turn 55 soon and I am eligible for a super payout of $185,554 next month of which only the $554 is taxable at 17.0%. However I still intend to keep working at my $58,000 a year job and wondered how this … [Read more...]

I’m 58 and I have $230,000 in super.
Will my super be taxed?

Super_Tax_11887283_c

Q: I’ve just turned 58, and I’m thinking of retiring before I turn 60. I would like to know whether I would have to pay tax on my superannuation. I know that after I turn 60, it’s tax-free, so my inquiry is regarding the period until I turn 60. My super money consists of compulsory employer … [Read more...]

I retired at 59. Do I pay tax on my superannuation lump sum?

4105756012_db89e4be50_b (1)

Q: I retired in September 2014. I’m now living on a tiny super pension of about $710 a fortnight. In September 2014, I also received a $15,000 superannuation lump sum. The tax free component of my total superannuation is 66% and the taxable component is 34%. I turned 60 in February 2015. Do I have … [Read more...]

Age Pension: Deemed income falls again with lower rates

Pixmac000067195155_rise

If you own financial investments and receive the Age Pension, or you hope to claim the Age Pension, then you need to be aware of a recent change to the deeming rates applicable to financial investments, and the annual change (every July) to the deeming thresholds for the Age Pension income test. … [Read more...]

Preservation age: I’m 58. Can I withdraw my super benefits?

58

Q: Can you please tell me whether I can withdraw my super benefits when I retire at age 58? A: This answer assumes that your super benefits are preserved, and the answer to your question depends on your date of birth. Under normal circumstances, access to superannuation benefits requires certain … [Read more...]

Death benefits: Is a binding DBN different from a reversionary pension?

reverse

Q: What is the difference between a binding death benefit nomination and a reversionary pension? Should a retail fund offer a reversionary pension option? The forms for my fund only mention binding death nominations. The terminology surrounding superannuation death can be confusing and … [Read more...]

Super for beginners, part 11: Is my super fund good enough?

Pixmac000083912415_evaluate_report

Q: I have my super with a major financial organisation. I’m wondering, are they a good company to be dealing with? I feel that their fees are a bit high: based on an investment amount of $300,000 the MER amount is $6,600 (2.2%) plus a monthly admin fee of $8.50. What are your thoughts on this … [Read more...]

Comparing funds: How does my super fund rate?

Q: Currently my husband and I invest in a couple of super funds. How can we find out where they rank on performance, compared to other super funds? The ranking on performance can change over time for a particular fund, and the ranking also depends on the particular timeframe that you’re looking … [Read more...]

Investment performance: Benchmarking super fund returns

Pixmac000084548238-stocks

Q: What you do is very important, thank you. I am 62 years, retired and draw an allocated pension. What I need is to get sound independent advice about whether I am in the best fund for my needs and how my super fund compares. I am considering changing super funds, but I need to know whether the … [Read more...]