Account based - Allocated pensions

Wise Owl Accountants can advise you in detail, on all types of retirement pensions.

Account based - Allocated pensions from superannuation money

Allocated Pensions can only be paid from Superannuation Money, there is no time frame as to how long the money needs to be in a Superannuation Fund. Theoretically you could contribute money to a fund today (if you are eligible) and commence to draw down a pension tomorrow.

An Account based - Allocated pension is governed by many rules and regulations

On the First day of July each year there is a new pension amount calculated for the ensuing year and may be paid Weekly, Monthly, Quarterly or Annually as required. As a rule of thumb if the fund is earning 7.5% per annum, you commence the pension at aged 65, the pension is indexed at 3% and you draw down the minimum pension, the fund will last you until you turn 87 years of age, if you draw down the maximum pension the fund will be last until the age of about 78. Non-concessional and taxed contributions. The fund is divided into two elements, Non-concessional Contributions and Taxed Contributions.

For income Tax Purposes the assessable amount of the pension is then subject to a taxation rebate of 15%, which usually means that the recipient of an allocated pension pays no taxation unless they have substantial other income.

Lump sum - A member is allowed to commute a lump sum at any time throughout the life of the pension, this becomes an Eligible Termination Payment. Allocated Pensions may be paid from your own self managed superannuation fund or purchased from one of the many commercial providers. Upon death of a pensioner, the trustees of the fund can distribute any balance remaining in the fund to any dependents of the member or in accordance with any binding death benefit election made by the member. Last will & testament in accordance with the relevant claused of the trust deed.

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