Something you could consider starting accumulation fund in parallel to the defined benefits, and perhaps the sacrifice of the wage to that if he likes. Given you have no risk in the defined benefits scheme, you could afford to be enough aggressive with the Accumulation Account.
I am also work and have $ 370.000 in the superannuation, from which the minimum of 4 per cent. My son refund a $ 400,000 to $ 7000 a month. I am looking for advice on how the best to handle the refunds from my son once I look to work. It is unfortunate that government requires a minimum retirement from the super, as it could live loan repayment and preserve my super balance.
It’s not essential that draws a pension from your superannuation, so you don’t need that income, consider the roll to a accumulation account.
In accumulation, there is payable tax on the earnings, which is 15 per cent, while there is no pension phase. The consequence therefore is that earnings in the accumulation are slightly lower than pension because of this tax.
However, if your pension that produces income you don’t need, and that excessive income then it is in the bank that you have a lot of time in accumulation.
Alternative, you could continue receiving the pension performance and then deposit that again in the super as a contribution later. This is possible through until age 75.
Paul Benson is a financial planner certified to Driving financial services. I am The guest the Financial autonomy podcast. Questions to: Paul@finanalatteri.com.au
- The advice given in this item is general in nature and is not to say to influence readers on a products of an investment or financial investment. They will always be surrounded with their professional advice that realizes their personal circumstances before making any financial decisions.
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