Transition To Retirement Pension Over 65

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4 Comments

  1. Dirk

    I have a SMSF .
    I reached 65 in December 2017.
    I was withdrawing super on a TTR basis but paying the money back into the super account each year.
    Do I still need to withdraw a minimum each year or does this no longer apply?
    I intend to continue to work part time until my 66 birthday then commence the pension.
    Is there a minimum I should withdraw each month after I am no longer working?
    What are they tax implications?

    Reply
    • Chris Strano

      A person between ages 65 and 74 must draw a minimum pension income of 5% of their account balance for the financial year, as calculated on 1 July. As your were 64 on 1 July 2017, your minimum income requirement is 4% for the current financial year. By turning age 65, your TTR pension should automatically convert to an account based pension – simply meaning your annual income is not limited to 10%, you now have access to your total balance…. double check this with your super provider.

      Over age 60 all of your income should be received completely tax free, unless your balance includes a taxable (untaxed) component. Ask your super provider if your balance has any taxable (untaxed) components.

      Reply
  2. lee foundis

    if you have ttr can this be accessed as lump sum after age 65 with other super components

    Reply
    • Chris Strano

      Hi Lee,
      Reaching age 65 satisfies the conditions of a full condition of release. Therefore, this TTR pension should be able to be automatically converted to an account based pension (or rolled back to accumulation phase), which would allow for lump sum withdrawals.
      It is best to discuss this with the super provider, as their processes will determine how this is dealt with.
      Regards,
      Chris

      Reply

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