Benefits of an account based pension - Australian Catholic Superannuation

Tax savings with a Transition to Retirement Account-based Pension Account can be significant.

Find out how Andrew saved so much money in superannuation tax

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DISCLAIMER

This presentation has been prepared by SCS Super Pty Ltd (ABN 74 064 712 607, AFSL 23055, RSE L0002264), the trustee of the Australian Catholic Superannuation & Retirement Fund ABN 24 680 629 023, RSE R1055436. Any advice contained in this presentation is of a general nature only, and does not take into account your personal objectives, financial situation or needs. Prior to acting on any information in this presentation, you need to take into account your own financial circumstances, consider the Product Disclosure Statement for any product you are considering, and seek independent financial advice if you are unsure of what action to take. The material contained in this presentation is based on information received in good faith from sources within the market and on our understanding of the legislation at this time. Financial planning services are provided under an arrangement with Industry Fund Services Pty Ltd (IFS) (AFSL 232514). A transition to retirement pension may not be suitable for all members. All references to “pension” in this document refer to the Australian Catholic Superannuation & Retirement Fund allocated pension.

Q: How did Andrew save so much money in super tax?

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Q: How did Andrew save so much money in super tax?

A: He moved his super savings into an Australian Catholic Superannuation Transition to Retirement Account-based Pension Account, while he continues to work…

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What is a Transition to Retirement Account-based Pension Account?

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A transition to retirement account-based pension is an account-based income stream that involves drawing down a pension from your superannuation. (It is also referred to as an allocated pension).

You can set up a transition to retirement account-based pension once you reach preservation age (55 for many people), even if you are still working.

Once set up you can withdraw a maximum of 10% of the pension balance each year, while you continue to work.

catholicsuper.com.au/allocatedpension

Once your superannuation (and other) savings are moved into an account-based pension account, you pay no tax on investment earnings:

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Savings in a Super Account

Same savings in a Pension Account

up to 15% tax paid on

investment earnings

0% tax paid on

investment earnings

catholicsuper.com.au/allocatedpension

Once your superannuation (and other)savings are moved into an account-based pension account, you pay no tax on investment earnings:

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Savings in a Super Account

Same savings in a Pension Account

up to 15% tax paid on

investment earnings

0% tax paid on

investment earnings

Click here for more information on tax and account-based (or allocated) pension accounts

catholicsuper.com.au/allocatedpension

The difference could save you

thousands in tax each year!

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The tax you save in an account-based pension account is money that could be adding to your retirement savings

catholicsuper.com.au/allocatedpension

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The tax you save in an account-based pension account is money that could be adding to your retirement savings, year after year

catholicsuper.com.au/allocatedpension

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The tax you save in an account-based pension account is money that could be adding to your retirement savings, year after year

as you continue working.

catholicsuper.com.au/allocatedpension

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The tax you save in an account-based pension account is money that could be adding to your retirement savings, year after year

as you continue working.

Plus… Salary sacrificing some of your regular income into your superannuation account and using pension income as replacement income can boost your retirement balance even more.

catholicsuper.com.au/allocatedpension

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The tax you save in an account-based pension account is money that could be adding to your retirement savings, year after year

as you continue working.

Plus… Salary sacrificing some income into your superannuation account and using pension income as replacement income can boost your retirement balance even more.

Click here, read how Anne used Salary Sacrifice to boost retirement savings and reduce income tax.

catholicsuper.com.au/allocatedpension

MEET ANDREW

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Andrew, age 55, wants to increase his superannuation savings ahead of retirement and plans to continue working full-time for several more years.

He has been saving in three different superannuation accounts but he feels he could be doing better.

Andrew met with a financial planner at Australian Catholic Superannuation and was advised to do two things:

1. Consolidate: his three super accounts into one account with Australian Catholic Superannuation

2. Convert: most of his newly combined superannuation balance into a Transition to Retirement Account-based Pension Account.

catholicsuper.com.au/allocatedpension

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Andrew starts an Australian Catholic Superannuation Transition to Retirement Account-based Pension Account with $350,000 (leaving $5,000 in his super account).

He chooses to receive the allowed maximum $35,000 pa (10% of his new pension account balance) as a monthly pension paid into his bank account.

In doing this Andrew saves tax because investment earnings on his $350,000 in the pension account are now tax-free.

catholicsuper.com.au/allocatedpension

The tax saved provides a boost to Andrew’s retirement savings.

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$350,000 balance in a super account

$350,000 balance in a pension

account

Investment return* - assume 6% pa after fees and charges but before tax

$21,000 $21,000

Tax on investment earnings* - Year 1 Up to 15%, or

$3,150 NIL

Earnings available to compound As low as $17,850 $21,000

* This is an example only. Actual investment returns and taxes vary depending on the investment option selected.

catholicsuper.com.au/allocatedpension

Plus, using his monthly pension income, Andrew can afford to salary sacrifice into his super account, increasing his retirement savings while reducing his taxable income!

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Read more about salary sacrifice and superannuation. Click here

catholicsuper.com.au/allocatedpension

Are you 55+, still working and want to maximise your retirement savings?

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You too could benefit from an Australian Catholic Superannuation Transition to Retirement Account-based Pension!

The independent superannuation monitor, SuperRatings, has rated our pension as Platinum level, the highest rating available.

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So you can be confident knowing that our pension is rated so highly!

24 catholicsuper.com.au/allocatedpension

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What to do next…

Read more on our website, here

Book an appointment to meet with a financial planner to discuss your situation on 1300 658 776 or click here for more information.

Attend a free retirement planning seminar

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T 1300 658 776

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