Pension and Retirement
Changes to super legislation have changed the retirement landscape. It’s never been more important to plan for your life in retirement. Life expectancy for the average Australian has increased significantly. Because we live longer and retire earlier, many Australians now spend a lot more of their lives in retirement. That’s good news, but it has now become even more important to plan ahead.
What are my options when I stop working?
- You can keep your money in super and continue to accumulate
You no longer have to take your money out of super at age 65. If you were aged between 65 and 74 you could keep your money in super provided you met a work test and gave details of hours worked each year to your super fund. However, now you can choose how and when you start enjoying the money that you have accumulated in super. You can keep your money in super for as long as you want.
- You can take your super as a lump sum payment
- You can use your super money to buy an income stream
> Allocated pension, including a > Transition to Retirement Pension option
- You can take your super as a combination of a lump sum and an income stream
It’s important that you seek financial advice before you decide what to do with your super, to ensure you are making the right choice. Your super might be taxed differently, depending on how you choose to receive it. From 1 July 2007, if you are 60 or more when you receive a benefit it will be tax free, whether it is a lump sum or pension payments from a taxed super fund. If you already receive an income stream you should still talk to a Financial Adviser to see if the new changes affect you.
Contact us
To speak with an adviser, telephone EquitySuper on 1300 659 799 or email your enquiry to advice@eqtsuper.com