Download our Spring Newsletter

What is the most tax-effective way of accessing my retirement money once I have stopped work?

You could possibly spend more than 20 years in retirement, so it is really
important that you plan for your finances to fund this stage of your life.
When it comes to your super, you generally have two options; you can
take the money as a cash lump sum and invest it elsewhere, or keep it in
super by rolling over to an income stream investment, like an account-
based pension.
Income stream investments are very tax-effective for the following reasons:

  • No tax is payable on earnings within the fund.
  • If you start an income stream between the ages of 55 and 59, thetaxable income payments you receive will attract a pension offset,which may enable you to receive thousands of dollars a year tax-free.
  • At age 60, you can receive tax-free income stream payments and you don’t have to include these amounts on your annual tax return. This could reduce the tax payable on your non-super investments.

Download our Spring Newsletter


Return
Sep 23, 2015 Category: General