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Level 2, 1 Prowse Street West Perth WA 6005
- 08 9430 7888
Level 2, 1 Prowse Street West Perth WA 6005
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.
Account-Based Pension
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.
Below is the following table to check your preservation age.
Date of birth Preservation Age
Before 1 July 1960 55
1 July 1960 – 30 June 1961 56
1 July 1961 – 30 June 1962 57
1 July 1962 – 30 June 1963 58
1 July 1963 – 30 June 1964 59
From 01 July 1964 60
Below are the set of assets that are included in the age pension:
Financial investments
Items or properties owned by the Partner in part or full in Australia or overseas.
Debts owed by the members.
• Vehicles and other assets
• Real estate annuities,
• Income streams
• Superannuation pensions
While submitting the Pension application file online through ESUPERFUND, the applicant needs to nominate a Pension Commencement Date that can be between 1 July of the current financial year and the current date If everything goes well, and there is no further information required, a maximum of 5 working days is sufficient to receive the pension document amd start smsf retirement phase.
If an individual has more than $1.6 million in their super and can easily manage $1.6 million in the pension phase where the earnings will get taxed at 15 per cent.
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.
| AGE AT 1 JULY EACH YEAR | TEMPORARY MINIMUM DRAWDOWN RATES END 30 JUNE 2022‡ | DEFAULT MINIMUM DRAWDOWN RATES START FROM 1 JULY 2022§ |
|---|---|---|
| Preservation age to 64 | 2% | 4% |
| 65 to 74 | 2.5% | 5% |
| 75 to 79 | 3% | 6% |
| 80 to 84 | 3.5% | 7% |
| 85 to 89 | 4.5% | 9% |
| 90 to 94 | 5.5% | 11% |
| 95 and over | 7% | 14% |
