Pension Refresh Strategy

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4 Comments

  1. james

    • I have an SMSF in pension phase.
    • I am 64 yrs old
    • Do I have to retire from another job in order to a Pension refresh and get funds from the accumulation account into the pension account to start a new pension?

    Reply
  2. Andrew Bell

    Hi Chris, I want to refresh my pension so that I can contribute more non-concessional cash. How is this actually done – i.e. is it just a matter of writing the minutes of a trustees’ meeting, or do I need other documentation?

    Reply
    • Chris Strano

      Hi Andrew,
      I assume you have a SMSF by the terminology you are using.
      Yes, minutes would need to be completed to commute the pension back to accumulation phase. Then pension commencement documentation to recommence a new pension.
      However, you should be mindful of mixing tax components, as it may be better to run two separate pensions, rather than combine all of your savings. Depending on your balance and proposed contribution amount, running separate pensions could provide signifcant tax benefits. Also, if you have a grandfathered account based pension, you should consider any impact a pension rollback would have on any social security benefits.
      Chris
      Related Posts
      What Is A Grandfathered Pension?
      What Is A Pension Commutation?

      Reply

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