Examine Account Primarily based Pensions – Star Ratings

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

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


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


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

So why take into account an account-primarily based pension? An critical purpose is since an account-primarily based pension is an investment structure with important tax positive aspects for those entering the retirement phase of life. As opposed to the earnings on investments held personally, earnings on investments held inside an account-based pension are tax free of charge. The income withdrawn from an account-based pension is also tax totally free. This compares favourably to investments held within 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 rates are as follows:

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

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

Examine Account Primarily based Pensions – Star Ratings