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Account Based Pensions

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Meg on SMSFs: Winding up market linked pensions with care

Due to recently-introduced rules, many people with old style pensions, also known as legacy pensions, will look to wind them up this year. The temporary amnesty allowing these pensions to be stopped should be navigated with care.

An alternative asset class for income-seeking retirees

A big market sell-off can force pensioners to 'sell cheap' in order to meet their miniumum withdrawal requirements. Investing in less volatile assets that also deliver regular income could provide an alternative.

Improving access to account-based pensions

Research suggests that 50,000 Australians who are retiring over the next year may not be able to access an account-based pension because they do not meet minimum application requirements of their super fund.

The psychological shift from saving to spending in retirement

Why do people have trouble shifting from a saving to spending mindset in retirement? Researchers have plenty of theories though can't identify an exact cause, nevertheless there are things that can enable the shift.

Meg on SMSFs: pensions and the power of partial commutations

Why does it matter what sort of payment is taken from a superannuation account? It makes sense to run down an accumulation account rather than a pension account, but what about using a 'partial commutation'.

Meg on SMSFs: should you start a pension before selling assets?

A super fund stops paying tax when it is in the pension phase, which can mean a tax exemption on capital gains built up over many years. Does that mean a pension should be started before an asset is sold? Not always.

How to manage the run down in your income in retirement

The first of five articles on modern retirement income products that aim for an increasing pension that lasts for life and on average should not decline in real terms. They are not silver bullets but worth a look.

How pension accounts can exceed $1.6 million

Many people believe it is not possible to hold more than $1.6 million in assets supporting pension accounts, but there's good news for the reader asking this question.

Is it time to review your super pension?

If the sum of a couple’s pension balances is over $1.6 million and a spouse dies, what can the survivor do to keep the assets in the superannuation environment?

The Yin and Yang of retirement income philosophies

In the world of retirement income planning, there are two major opposing schools of thought: probability-based and safety-first. Understanding their distinctions is important in achieving the best outcomes.

Keeping track of 'superannuation interest' is critical

A unique feature of SMSFs is the concept of 'superannuation interests' which must be monitored to keep track of the taxable components in a super fund. Good records can avoid problems later.

Changes to Centrelink treatment of account-based pensions

Get ready for more pension-related changes: from 1 January 2015 the way account-based income streams (including account-based pensions) are assessed under the income test for Centrelink purposes will be changing.

Most viewed in recent weeks

Retirement is a risky business for most people

While encouraging people to draw down on their accumulated wealth in retirement might be good public policy, several million retirees disagree because they are purposefully conserving that capital. It’s time for a different approach.

The perfect portfolio for the next decade

This examines the performance of key asset classes and sub-sectors in 2024 and over longer timeframes, and the lessons that can be drawn for constructing an investment portfolio for the next decade.

UniSuper’s boss flags a potential correction ahead

The CIO of Australia’s fourth largest super fund by assets, John Pearce, suggests the odds favour a flat year for markets, with the possibility of a correction of 10% or more. However, he’ll use any dip as a buying opportunity.

The challenges with building a dividend portfolio

Getting regular, growing income from stocks is tougher with the dividend yield on the ASX nearing 25-year lows. Here are some conventional and not-so-conventional ideas for investors wanting to build a dividend portfolio.

How much do you need to retire?

Australians are used to hearing dire warnings that they don't have enough saved for a comfortable retirement. Yet most people need to save a lot less than you might think — as long as they meet an important condition.

Welcome to Firstlinks Edition 594 with weekend update

It’s well documented that many retirees draw down the minimum amount required and die with much of their super balances untouched. This explores the reasons why and some potential solutions to address the issue.

  • 16 January 2025

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