Taking a super pension

When you retire and/or reach a certain age, you can access your super benefits as a lump sum or as a superannuation pension.

A superannuation pension is also known as an income stream.

You can purchase a pension from your existing superannuation fund or a related financial organisation, or from another super fund or organisation, or start a pension within a self-managed super fund (SMSF).

You may also be eligible to start a transition-to-retirement pension (TRIP) before you retire, provided you have reached your preservation age.

Set out below are all SuperGuide articles explaining Taking a super pension.

Super rich tax? Trawling SMSF accounts to fix budget not the answer

Note: This article is an updated response to recent claims that superannuation tax concessions are directed towards the ‘super rich’. The federal government is considering significant tax reform, which is likely to include superannuation tax changes as part of that reform process. The relevant links … [Read more...]

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

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 and death can be confusing and … [Read more...]

SMSF pension earnings remain tax-free after death

SMSF pension earnings remain exempt from tax until a superannuation death benefit is paid to a dependant, or paid to the deceased member’s estate.The tax exemption on pension earnings remains in place regardless of whether the death benefit is paid as a lump sum, or as a pension, provided the … [Read more...]

Estate planning: Beware the dastardly death tax

Although superannuation death benefits are tax-free when paid to individuals considered ‘dependants under the tax laws’, a ‘death tax’ continues to apply when super monies are paid to individuals considered ‘non-dependants under the tax laws’.Any of your children aged 18 or over, who can’t prove … [Read more...]

Age Pension income test: Deeming rates and deeming thresholds

Note: This article explains the latest deeming rates and the deeming thresholds for the Age Pension income test. If you are seeking information about the latest increases in the thresholds for the Age Pension income test and Age Pension assets test see SuperGuide article Age Pension: More … [Read more...]

More retirees eligible for Seniors Health Card (CSHC), but harsher income test

Effective since 20 September 2015, the income test thresholds for the Commonwealth Seniors Health Card (CSHC) have increased again, in line with the federal government’s promise to index the thresholds annually.CSHC income thresholds are now indexed annually in line with CPI (inflation). The … [Read more...]

Age Pension: Does my superannuation lump sum count for income test?

Q: I’m over 65 and a member of a super fund, from which I receive an account-based pension. I need to withdraw a lump sum of $40,000 from my super, as my super is not enough to live on. I will have to apply for a part pension (Age) from Centrelink. Will my lump sum be counted as income in the … [Read more...]

MySuper: Now at a super fund near you

If you believe the federal government’s public relations campaign, MySuper can deliver you the equivalent of nirvana in superannuation – low fees, strong investment performance, financial security and a worry-free retirement.Pardon? You haven’t seen the government’s MySuper publicity campaign? I … [Read more...]

Age Pension income test change hits funded defined benefit pensions

With so many recent changes affecting the Age Pension (such as deeming income from new super pensions, or for new Age Pensioners, from January 2015, and a stricter assets test from January 2017), another significant change has gone largely unnoticed except for the thousands of retired public … [Read more...]