24A Macarthur Street, Parramatta NSW 2150
02 9683 2869

Our Areas of Service

Account Based Pension

Retirement Planning Advisors for Sydney

Macarthur Wealth Management are knowledgeable retirement planners and can assist you in understanding what an Account Based Pension is.

An Account Based Pension is purchased with superannuation monies and is designed to provide you with a regular, flexible, tax effective income stream in retirement. Account Based Pension balances increase with positive investment returns and decrease with pension payments, negative investment returns and fees.

Earnings from the underlying portfolio of your Account Based Pension are tax free, making Account Based Pensions a very tax effective retirement structure.

If you would like to speak with a retirement planning advisor, contact Macarthur Wealth Management today. Located in Parramatta, we can welcome clients from across Sydney to seek the assistance of our experienced retirement planners.

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Types of assets

The minimum pension payment factors that apply to Account Based Pensions for the 2018/19 financial year are as follows:

Age
Percentage factors
Under 65
4%
65 – 74
5%
75 – 79
7%
80 – 84
9%
90 – 94
11%
95+
14%
*Minimum pension payments are based on your account balance as at 1 July. Account Based Pension payments are tax-free for individuals over 60 years of age and do not have to be included in tax returns (providing they are made from an already-taxed source). Pension payments made to individuals between preservation age and 60 are subject to tax. Although the pension drawn (less any tax-free amount) will be added to your assessable income and taxed at your marginal tax rate, a tax offset equal to 15% of the taxed element will be provided to help offset any income tax liability that arises.
  • Benefits

    Account Based Pension
    •A tax-free income stream to assist in meeting your retirement income needs
    •The ability to choose the frequency of your pension payments (e.g. monthly, quarterly, half yearly or annually) and payments can be credited to your nominated bank account or paid to you by cheque
    •No taxes on investment income or capital gains realised within the fund
    •The capacity to invest your portfolio in accordance with your risk profile, which is not possible through non-account based retirement income streams such as Annuities
    •The option of nominating a reversionary beneficiary (usually a spouse) who will receive the pension in the event of death.
  • Risks

    Account Based Pension
    •The obligation to take the minimum pension (based on your age) each year, regardless of how your investments are performing
    •The fact that there is no guarantee that your pension will last for your lifetime as this will depend upon the performance of the underlying investments over time, as well as your level of drawings.

Contact our Parramatta-based retirement planners today

We are here to help the residents of Sydney enjoy retirement. Reach out to our team of retirement planning advisors in Parramatta.

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