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Industry Funds, Drawing a pension

Discussion in 'Superannuation, SMSF & Personal Insurance' started by GG, 20th Jan, 2010.

  1. GG

    GG Active Member

    Joined:
    21st Oct, 2009
    Posts:
    35
    Location:
    Sydney, NSW
    Hi all

    I managed to get to see a financial advisor.
    Apparently there's a problem with taking an allocated pension with a superfund such as Agest.

    If your money is invested in growth then each time you are paid your pension then shares will have to be sold to fund the payment, and it might not be a good time to sell.

    So it would be more flexible to set up something called a 'Platform' system (is this a WRAP?)
     
  2. Yellowfly

    Yellowfly New Member

    Joined:
    20th Jan, 2010
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    Location:
    Melbourne
    Hi GG,

    Most Industry Super Pensions I am aware of let you selectively withdraw from one investment choice or another. For example someone may choose to invest 75% in a growth option and 25% in cash and can choose to take all withdrawals from the cash portion. AGEST allows this.
     
  3. Intellikev

    Intellikev Active Member

    Joined:
    16th Dec, 2009
    Posts:
    28
    Location:
    Brisbane Qld
    Industry Funds Drawing a Pension

    Hi GG, this applies to most funds when you move from the accumulation phase to the draw down phase. Generally when you complete the appropriate application/membership forms there is an area that allows you to nominate what percentage or $ value you would you would like to receive from each asset class - Cash and Fixed Interest, Shares - Aussie and International and Property. Obiviously you would need to determine your appropriate risk profile first as this would alllow you to weight the asset classes to maximise your return over time. Naturally you would draw the cash and Fixed Interest component first as this would allow the other classes to increase in value over time.
     
  4. GG

    GG Active Member

    Joined:
    21st Oct, 2009
    Posts:
    35
    Location:
    Sydney, NSW
    Thanks Yellowfly.
    I wonder how important it is to do this. I've no idea how one would quantify the advantage of keeping some as cash and only withdrawing from this.

    I naively thought that that with people moving between shares, cash etc that it might all even out and that it might not make any difference from what pot you made drawdowns.

    Are there discussions on this sort of thing anywhere?
    Cheers