HAVE YOUR SU­PER CAKE AND EAT IT

Southern Gazette (South Perth) - - OPINION -

HEN it comes to de­cid­ing what to do with your su­per, the most pop­u­lar op­tion now is to have your cake and eat it too by hav­ing an ac­count-based pen­sion.

This op­tion leaves your su­per money in­vested and pro­vides an in­come while still al­low­ing the flex­i­bil­ity to with­draw money.

A pen­sion through your su­per can also al­low for reg­u­lar in­come from your su­per even if you're still work­ing and these pay­ments can be on top of the Gov­ern­ment Age Pen­sion if you re­ceive it.

You can end up with more sav­ings, be­cause the money in your ac­count stays in­vested and is taxed at a con­ces­sional rate.

You may also want to con­sider a tran­si­tion to re­tire­ment plan.

With tran­si­tion to re­tire­ment, you can use an in­come ac­count as an ex­tra source of in­come and cut back on your work­ing hours, or you can take ad­van­tage of the tax-sav­ing op­por­tu­ni­ties to speed up your su­per sav­ings. You can also open an ac­count if you change jobs on, or af­ter, turn­ing 60 or once you turn 65, even if you're still work­ing.

Of course, there are some spe­cific ben­e­fits to tak­ing a lump sum, the most no­table be­ing that it usu­ally makes sense for re­tirees to pay off any re­main­ing mort­gage or other higher in­ter­est rate debts when they stop work­ing. But ev­ery­body's sit­u­a­tion is dif­fer­ent so you should con­sider seek­ing in­de­pen­dent fi­nan­cial ad­vice.

Do you need su­per ad­vice? Join one of our free ses­sions in Can­ning Vale, Hil­larys, Mt Law­ley or The Vines, see www. mon­eytalks. net.au/perth for more in­for­ma­tion and to reg­is­ter.

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