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Pension - must I?

Discussion in 'Superannuation, SMSF & Personal Insurance' started by Dissed, 18th Apr, 2013.

  1. Dissed

    Dissed Active Member

    Joined:
    28th Aug, 2008
    Posts:
    34
    Location:
    Sydney, NSW
    I am 59 and am not able to find job. I recently contributed after tax saving of $450k which brought my SMSF super balance to $900k. My partner has a very secure job and is in a high earning profession. Therefore I have no need for a pension ie for paying bills etc. My financial planner still thinks that I should start a transition to retirement pension, key reason is 15% tax that applies to the super funds earnings will be saved. Her suggestion is that pension should be put in a bank and after 3 years put back into super.

    1. Looks like lot of recycling but not sure of the reasons/advantage.

    2. She wants me to start the pension this year. Are there advantages in doing it before 30 June?

    Any help will be greatly appreciated.
     
  2. Superman

    Superman Well-Known Member

    Joined:
    6th Nov, 2007
    Posts:
    343
    Location:
    Gold Coast, QLD
    Hi Dissed,

    You need to seek some advice.

    Not only do I think you should start a pension, I think you should have two - one with the amount that was in your member account before you recently dropped the $450k in and another with the $450k

    A little bit of paperwork now can potentially insure you and your beneficiaries from additional unforeseen tax in the future.

    Don't worry about the cash flow requirement - and if you have already put in $450k this year, you will not be able to personally contribute any more as non-concessional contributions until after 30 June 2015.

    If of want more info please contact me.

    Kris
     
  3. Dissed

    Dissed Active Member

    Joined:
    28th Aug, 2008
    Posts:
    34
    Location:
    Sydney, NSW
    Sorry Kris, had to go missing for personal reasons and could not access the forum. Will like more help please. I am not in Gold Coast, so any links, areas to research will be very helpful.

    I am assuming that rationale for taking two pensions: I will be able to (after 3 years limit is over) recontribute and reduce my taxable part in the accumulation part.