How do you start an Account-Based Pension in an APRA-regulated fund? What about your own SMSF? This webinar will walk through the key steps and give you key tips and traps to get the best outcomes for you and your family.
Webinar: Starting an account-based pension
About the author
IMPORTANT: All information on SuperGuide is general in nature only and does not take into account your personal objectives, financial situation or needs. You should consider whether any information on SuperGuide is appropriate to you before acting on it. If SuperGuide refers to a financial product you should obtain the relevant product disclosure statement (PDS) or seek personal financial advice before making any investment decisions. Comments provided by readers that may include information relating to tax, superannuation or other rules cannot be relied upon as advice. SuperGuide does not verify the information provided within comments from readers. Learn more
© Copyright SuperGuide 2008-26. Copyright for this guide belongs to SuperGuide Pty Ltd, and cannot be reproduced without express and specific consent. Learn more
Responses
-
Hi Garth,
For a super balance of $700,000, starting a pension account after turning 60 and receiving yearly minimum payment. Each year withdraw a lump sum $100,000 from the pension account, and recontribute to a super account, and then immediately start a second pension account with this $100,000. Repeat this process in the following 6 years(assuming no interest being earned), the end result would be the total $700,000 would be tax-free, and investment income from this $700,000 during the whole process would be tax free as well. That is my understanding for above situation after watching your seminar. Please advise. Thanks.
-
Hi Feng,
Yes, this would be possible assuming you remain eligible to contribute to superannuation during the years in question. Withdrawals and re-contributions of amounts larger than $100,000 are also possible under the non-concessional cap and bring forward rule.
You can read more in our content on the recontribution strategy, making contributions after age 60 and adding contributions when you have started a pension.
Best wishes
The SuperGuide team
-
-
Hi Garth,
Starting a super pension by ending employment after turning 60, half year later, starting a new employment. The new employment income will be taxed at marginal rate – I was told as such, is this correct? Also, for the new employment: if it is from the same employer as the ending employment, would that be ok?
Thanks
Feng JIANG-
Hi Feng,
Yes, any employment income is taxed at marginal rates.
It is possible to commence new employment with an employer you have left in the past, including if you left that employer after turning 60 and accessed super. The original termination of employment should be genuine (i.e., any remaining leave should be paid out, and you should be appropriately terminated in the employer’s systems). There is nothing to prevent you from applying for a new position with that employer in future and starting work there again.
Best wishes
The SuperGuide team
-
Leave a Reply
You must be logged in to post a comment.