Pensions

When servicing clients for Retirement Planning advice, one of our key areas of our strategy advice is to convert, where eligible, a client’s Superannuation from ‘accumulation phase’ into a ‘pension phase’.

Meeting your Preservation Age (55 and above)

To be eligible to convert your Superannuation, you first must meet your preservation age and for those who are born prior to 30 June 1960, your preservation age is 55. For those born after this date, the preservation will gradually increase to 60. When you meet your preservation age, you are then able to convert your Superannuation from an ‘accumulation phase’ into a ‘pension phase’.

Pensions are the most tax effective structure available in Australia. This means that any income you receive in your Superannuation such as interest income, dividends or rental income will be tax-free. In addition any realised capital gains that you can incur from a sale of an asset will also be tax-free and this is why a Pension structure is the most tax effective structure available in Australia.

• a 0% tax rate applies to income producing assets
• a 0% tax rate on Capital Gains Tax “CGT”.

How we can ‘HELP’ you?

If you have reached your preservation age, we can assist you with the following:

• Convert your Superannuation into an Account Based Pension (if you have fully retired).
• Convert your Superannuation into a Transition to Retirement Pension (if you are still working).
• Provide you with investment advice on your Superannuation assets based on your investor risk profile.
• Ensure you receive a regular pension income stream from your Superannuation.