WESTSCHEME PENSIONS
The Federal Government provides generous tax concessions to encourage people to take their superannuation savings in the form of a regular income stream (commonly known as a pension).
In addition, under the Government’s 'transition to retirement' initiative, the availability of the pension has been extended to persons who are still working but have attained their superannuation preservation age (currently 55).
BENEFITS OF SUPERANNUATION PENSIONS
Some of the key benefits of superannuation pensions are:
- Investment earnings are tax-free.
- Pensions paid to a person 60 years of age or above are tax-free and do not form part of the person’s assessable income.
- Pensions paid to a person under 60 years of age are taxed but are eligible for a 15% offset with any Exempt Component being tax-free. Once the pension recipient turns 60 years of age, their full pension will be tax-free.
Please refer to the Westscheme Pension PDS for more information.
For more information on Transition to Retirement, please visit the ATO website, www.ato.gov.au.
Click here for Westscheme's Retirement Seminars