A little knowledge goes a long way when it comes to retiring comfortably
From TTRs to transfer balance caps, and from income streams to non-concessional contributions, retirement comes with a language all of its own. While the terms may sometimes be unfamiliar, the definitions are easy enough to understand, and helpful for those of us heading towards retirement or accessing superannuation.“A really good starting point is going on to your super fund’s website,” she says.
A super pension, on the other hand, is a regular payment drawn from your super savings, which remain invested after retirement. A retiree can start receiving an income from their super from the age of 60. “It is not uncommon for people to think they have to wait until they reach pension age before they can retire,” she says. “This is where super may be able to help. If they have saved enough through their working life, they might not have to wait until they’re 67 and may instead have an ability to retire or semi-retire much earlier. For many, reaching preservation age is a real milestone and can provide prospective retirees with flexibility.
“The lifetime limit is known as the transfer balance cap and is the total amount that you can move from accumulation into the income phase,” Palmer says. “Turning your super into an account-based retirement pension may be beneficial because not only can it provide you with a regular income, but the earnings are completely tax free.” Currently, the transfer balance cap is $1.9m.
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