Examine Account Based Pensions – Star Ratings

In this report we research & price 70 account primarily based pensions from 64 economic institutions, to discover the accounts that offer you outstanding value for retirees.Upon retirement, workers have 3 broad selections with regards to their superannuation. They can:

• withdraw their superannuation as a lump sum to commit or invest elsewhere


• use their superannuation to purchase or “roll” into an account-primarily based pension


• withdraw element of their superannuation as a lump sum and convert the remainder to an account-based pension.

So why contemplate an account-primarily based pension? An critical reason is because an account-based pension is an investment structure with significant tax benefits for these entering the retirement phase of life. In contrast to the earnings on investments held personally, earnings on investments held within an account-based pension are tax cost-free. The income withdrawn from an account-primarily based pension is also tax cost-free. This compares favourably to investments held inside superannuation, which attracts a 15% tax on earnings and investment held personally, which attract tax on earnings at an individual’s marginal tax rate. For the 2014/15 economic year, person income tax prices are as follows:

Taxable revenue	Tax on this revenue
– $ 18,200	Nil
$ 18,201 – $ 37,000	19c for every single $ 1 more than $ 18,200
$ 37,001 – $ 80,000	$ 3,572 plus 32.5c for each and every $ 1 more than $ 37,000
$ 80,001 – $ 180,000	$ 17,547 plus 37c for each $ 1 more than $ 80,000
$ 180,001	and more than $ 54,547 plus 45c for each and every $ 1 more than $ 180,000

Supply: ATO. Individual tax rates for the 2014-2015 economic year: Does not consist of Medicare levy of 2%

Examine Account Based Pensions – Star Ratings