Pension Plans
An allocated pension is an account in which you invest superannuation savings in exchange for a regular income when you retire. Allocation pensions are issued by the superannuation and pension funds. Allocated pensions can be purchased with unrestricted non-preserved superannuation savings or other Eligible Termination Payments (ETP). There are a number of different investment options that you may choose enabling growth of your investment as well as generating a tax advantaged income stream.
Regular payments from your pension continue to be paid until the allocated pension account runs out. Payments may comprise both the original capital invested and the net interest earned on that capital.
The amount of income payment can vary, however the government does impose minimum and maximum levels of income that may be received within each financial year.
The benefits of allocation pension plans include:
1. providing a flexible income to meet changing needs;
2. access to capital; and
3. tax effective investment.
They provide you with the ability to control your investment during your retirement. For further details contact us today.