February 2024 Retiree newsletter

Pension fund performance to December 2024

Pension fund returns exceeded minimum withdrawal rates for most retirees in 2024, providing a buffer against volatile times ahead. Read more.

Pension fund performance to December 2024

Pension fund returns exceeded minimum withdrawal rates for most retirees in 2024, providing a buffer against volatile times ahead. Read more.

BEST PERFORMING PENSION FUNDS

Check out the best performing pension funds across 5 different investment categories over 1 year and 10 years, updated to 31 December 2023.

• All Growth category (96–100%)
• High Growth category (81–95%)
• Growth category (61–80%)
• Balanced category (41–60%)
• Conservative category (21–40%)

Have you got an exit plan? The importance of estate planning

Older Australians are wealthier than ever before, so careful estate planning is crucial if you want your super and other assets to be distributed in line with your wishes. Read more.

Have you got an exit plan? The importance of estate planning

Older Australians are wealthier than ever before, so careful estate planning is crucial if you want your super and other assets to be distributed in line with your wishes. Read more.

What is a testamentary trust and does my Will need one?

Establishing a testamentary trust can have valuable estate planning benefits. With significant amounts due to be transferred via inheritances in the coming decades, it may be worth considering one. Read more.

What is a testamentary trust and does my Will need one?

Establishing a testamentary trust can have valuable estate planning benefits. With significant amounts due to be transferred via inheritances in the coming decades, it may be worth considering one. Read more.

Estate planning when your child has a disability: What can I do?

Planning financial support for your children after you die is tricky, but a child with disability makes the task even harder. How do you ensure your child is cared for… Read more.

Estate planning when your child has a disability: What can I do?

Planning financial support for your children after you die is tricky, but a child with disability makes the task even harder. How do you ensure your child is cared for… Read more.

SuperGuide members Q&A: March 2024

Thursday 21 March 2024 at 11:00 am AEDT

In this webinar super expert Garth McNally will answer recent questions from SuperGuide members.

Q: In the December webinar, a question was posed asking “If I don’t need the funds yet, can I leave the fund in accumulation phase?”. The answer was yes, but you’ll pay 15% tax on any gains.

Why wouldn’t one convert to pension phase; take out the minimum requirement either monthly or in bulk for that financial year; rebank back into super; and be in a tax free environment? I appreciate this only can happen until 75yo.

A: The main reason not to convert to pension is if the person has already reached their transfer balance cap and cannot transfer further funds into the pension phase.

Alternatively, it may be that their total super balance is higher than the general transfer balance cap and they are therefore prevented from making further non-concessional contributions. If concessional contributions are also not an option (due to already contributing up to the cap, or not meeting the work test to make deductible contributions), then being forced to make withdrawals from the pension phase that must then be invested outside super may be undesirable.

Many people do commence pensions and reinvest their withdrawals as super contributions, just as you propose. As you noted, further contributions are not possible after age 75, except downsizer contributions from the sale of a home.

Remember that contributions cannot be made into a pension, so a separate accumulation account must be maintained to receive them.

You can learn more about these issues in the articles below.

• High net worths: Is it worth starting a pension, or stick to accumulation?

• Converting super into retirement income: What are your options?

If you’re one of the many people who has made additional contributions to super after starting a pension (or you plan to) there are decisions to be made about how to manage it. Should you start a new pension with the additional savings, leave money in the accumulation phase, or close your existing pension to combine the funds into one new pension?

Read about what to consider when you top up a super pension.

PensionHelp provide personal guidance on claiming the Age Pension and other Centrelink benefits.

SuperGuide members receive a 20% discount on PensionHelp phone consultations.

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.

Superguide Pty Ltd ATF Superguide Unit Trust as a Corporate Authorised Representative (CAR) is a Corporate Authorised Representative of Independent Financial Advisers Australia, AFSL 464629.