The pension amount becomes the source of income for people who are retired and no longer actively working. A periodical monthly income from SMSF gives a sense of accomplishment to the pensioner as he/she is not dependent on any other source for their expenditure. To be legitimately eligible for the age pension, a person needs to meet the said qualifying age for recieveing smsf pension rates.
The Pension age has been increased to 66 years and 6 months for individuals born from 1 July 1955 to 31 December 1956 active from 1 July 2021.
There are two types of Pensions from which a member can choose anyone.
If the member has crossed the age of 65, is retired and achieved the preservation age, he/she can go with an Account-based Pension providing unlimited access to Superannuation.
Transition to Retirement (TTR)
If the member has reached the preservation age but still actively working or not retired, he/she can go with Transition To Retirement.