Account Based Pension
We can help you achieve your retirement goals.
What Is An Account Based Pension
An account based pension is a retirement income stream purchased with superannuation money. Regular pension payments are paid until the allocated pension account balance runs out or the account balance is closed (withdrawn). If the income you wish to draw exceeds the underlying investment earnings then capital is used up to meet your income requirement.
The minimum payment depends on your age.
How Much Can I Drawdown?
There are limits on the amounts you can withdraw between the ages of 55-65 you can drawdown the minimum of 4% upto 10% of your account balance. Once you have reached age 65 you can withdraw all your funds as cash.You can also roll it back into a super accumulation account. The Minimum amounts you can draw down increase with age.
Income payments can be made monthly, quarterly, half-yearly or annually and continue until the account balance is exhausted.
There is no guarantee you will have a lifetime income. Your account balance is affected by how much you take out each year and what investment returns you receive. Account keeping fees will also reduce your balance.
What Happens If I Die?
If you die, any money remaining in your account will be paid out as a lump sum to your dependents or your estate. Alternatively, if you have set up a Reversionary Pension the income payments can continue to your nominated beneficiary, such as a spouse or dependent.
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