There are a number of benefits to setting up a BUSSQ Retirement Pension
BUSSQ has two of these Pension types – a Transition to Retirement Pension and a Retirement Pension.
The Transition to Retirement Pension is often used to help you move from full time to part time work when you near retirement. The pension can make regular payments to you to help fill the gap that your lower pay leaves. The Transition to Retirement Pension is also used by some who remain working full time, but either start to, or increase their salary sacrifice contributions into super. In this case the shortfall in pay can then be met from the Transition to Retirement Income stream. This strategy is one often used, although it doesn’t suit everyone. We are able to provide financial advice to you to help you work out whether this strategy may suit you and your circumstances.
The Retirement Pension is used when you have retired. It is created with funds in super that are non-preserved, so you would have already met a trigger of release. For example, you may be over 55 and permanently retired, or over 60 and have left a job. Or you could have turned 65, working or not. All these are triggers of release. The Retirement Pension is more flexible than the Transition to Retirement Pension, as you can make lump sum withdrawals and there is no upper limit on how much you withdraw in regular pension payments.
In both cases the earnings in these pensions are tax free, and in some cases the income that you draw is also tax free. This would apply if you are age 60 or over. If you are under 60 there may be some tax applicable, depending upon your circumstances, but you could also enjoy a tax rebate on some of the income drawn.
From transition to retirement and retirement planning, to superannuation investment options and retirement income stream choices, BUSSQ’s team of pension specialists is here to help. Book in to speak with a BUSSQ Financial Planner today and get your retirement sorted.
*Transition to Retirement Pension will become taxed from 1 July 2017