The introduction of the Simpler Super reforms saw many SMSF members commute their complying income streams (defined benefit pensions) that were previously established to ‘compress’ benefits under the old RBL system. The removal of RBLs saw many members wanting a simpler and more flexible income stream, with monies supporting these complying pensions being able to … Continue reading »
There is a growing focus on retirement income streams within SMSFs, in particular with the tax advantages available at both the fund and member level. The Simpler Super reforms have opened up a range of strategies to for advisers and their SMSF members to consider, along with fluctuating market conditions. Join me for this … Continue reading »
The 2011 year was the first year in which baby boomers became eligible to receive an Age Pension. However, for many baby boomers, the ability to draw an income stream has started a lot earlier in life with individuals either retiring well before age 65 or transitioning to retirement. With a SMSF, the ability to … Continue reading »
The contribution cap reduction from 1 July 2012 for those over 50 has certainly been a ‘kick in the guts’ for many people who were at a stage in life where they have a capacity to build their retirement savings. A strategy that has grown each year since its introduction on 1 July 2005, has … Continue reading »
I was pleased to read Minister Shorten’s press release today that the Government has decided to extend the 25% reduced minimum pension levels for the 2012/13 financial year. I have been quite vocal in my views that the Government ‘pulled the trigger’ a little early in trying to re-rationalise these minimum pension percentages from 1 … Continue reading »
With 2011 representing the first year in which baby boomer’s can qualify for the Age Pension (born in 1946), retirement income streams are growing in importance for many Australian’s looking towards the next stage of their lives. According to well-known demographer, Bernard Salt, “Baby Boomers will never retire. Their parents retired; old people retire; obsolete … Continue reading »
The current state of the world financial markets continues to bring great despair to many self-funded retirees. With the ASX All Ordinaries trading at about 4,800 around Federal Budget night, the Government in their wisdom decided on a path to ‘normalise’ the minimum pension factors by 1 July 2012. This resulted in the previous 50% … Continue reading »
The Australian Taxation Office (ATO) has recently released draft Tax Ruling, TR2011/D3 which outlines when a pension commences and when it ceases. This draft income tax ruling is by no means “earth-shattering” in the context of the views expressed by the ATO. However, it does provide clarity around when a pension commences and ceases, in … Continue reading »
Assistant Treasurer and Minister for Financial Services & Superannuation, Mr Bill Shorten has announced the finalisation of regulations providing further draw down relief for account-based pensions in the 2011/12 financial year. Superannuation Industry (Supervision) Amendment Regulations 2011 (No. 1) provides relief for self-funded retirees by reducing the minimum payment amounts for accounts based pensions by 25% for the … Continue reading »
With the end of the financial year fast approaching, it provides an important time for SMSF trustees to turn their attention to a range of strategies leading up to 30 June. The following list provides some ideas, issues, and strategies that can be used (or need to be addressed) with your self-managed super fund before … Continue reading »