Unlock Tax-Free Benefits: Commence Your Superannuation Pension Today!

Closing the Gap: A Surprising Statistic

Did you know that a recent study found that nearly 50%* of members in APRA funds over the age of 65 have not yet commenced a tax-free pension and are still paying 15% tax on their earnings in super?

This statistic underscores the importance of taking action now to ensure you're making the most of your retirement savings.

The Tax Advantage of Superannuation Pensions

One of the most compelling reasons to consider commencing a pension in your superannuation are the tax benefits it offers. When you commence a pension, the taxation landscape changes dramatically. Here's what you need to know:

1. Tax-Free Income: Once you commence your superannuation pension, any pension you withdraw is completely tax free. This means you get to enjoy your retirement income without the burden of paying income tax.

2. Tax-Free Investment Earnings: Not only are the withdrawals tax free, but investment earnings from within your superannuation pension account are also exempt from tax of up to $1.9 million per person. This allows your investments to grow unhindered, helping you secure your financial future.

3. No Capital Gains Tax (CGT): Another incredible benefit is that you won't be subject to Capital Gains Tax (CGT) when you sell or change your investments within your superannuation pension account. This means more of your returns stay for the future.

Take Action Today

If you’re over 65, it is not too late to consider commencing a pension in your superannuation. By doing so, you can take full advantage of the tax-free benefits available.

You can contact your superannuation provider for more information.

Self-Managed Superannuation Fund

If you’re in a Self-Managed Superannuation Fund, you are more likely to be receiving taxation advice, and already maximising your benefits in retirement.

If you and your partner have more than $300,000** in superannuation, a Self-Managed Superannuation Fund might be an attractive and cost-effective solution to maximise your retirement goals.

Don't hesitate to reach out to us to schedule a discussion. Your financial future is important to us, and we are committed to helping you make the most of it.

Thank you for entrusting us with your financial well-being. We look forward to helping you secure a tax-efficient and prosperous retirement.

*1 Class Super Benchmark report 2023 https://www.class.com.au/news/class-launches-2023-annual-benchmark-report/

** 2 ASIC Information sheet 274 https://asic.gov.au/regulatory-resources/financial-services/giving-financial-product-advice/tips-for-giving-self-managed-superannuation-fund-advice/

David Barker & Lepapa Mua