Should I keep my defined benefit scheme or switch to accumulation?

One thing you can take into account is to start a accumulation fund in parallel with your defined benefit fund and perhaps sacrifice it if it is affordable. Considering that you do not have any risks in the defined benefit plan, you can be quite aggressive with the accumulation account.

I still work and there is a retirement of $ 370,000, which I downloaded at least 4 percent. My son is paying back a loan of $ 400,000 from $ 7000 per month. After stopping working, I’m looking for advice on how to manage my son’s repayments best. It is unfortunate that the government requires a minimum withdrawal from the super because I can experience credit repayments and protect my super balance.

It is not important that you get a pension from your pension, so if you don’t need this income, consider going back to a accumulation account.

In the accumulation, there is a tax to be paid for earnings of 15 percent, whereas there is no tax in the retirement stage. Therefore, the result is that the gains in the accumulation account are slightly lower than the pension due to this tax difference.

However, if your pension produces income that you do not need and sits in the bank where excessive income earns very little, you are likely to be better in accumulation.

Alternatively, you can continue to receive retirement income and then invest it in Super as a post -tax contribution. This is possible until the age of 75.

Paul Benson, Guidance Financial Services. It hosts Financial autonomy Podcast. Questions: paul@financialautonomy.com.au

• The recommendations given in this article are general in nature and do not aim to influence readers’ decisions on investment or financial products. They should always seek their own professional advice, taking into account their personal conditions before making financial decisions.

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