I just turned 60 and don’t need the money. Should I still draw from my super?

I have read the transfer balance cover and seems simple enough for normal super fund owners, but I have described the useful super with a lifelong pension, so how does this work?

Thank you for your question. You are quite right, it is not so simple for those with retirement salaries defined when it comes to the transfer balance cover.

As a starting point, your assessment against the transfer balance limit is determined by multiplying your first -year pension amount by 16. For example, if you have a pension of 80,000 dollars per year, the figure used to evaluate your position against the transfer balance limit is $ 80,000.

The place where it can be difficult is for those who started a pension a few years ago and now wants to make a little more money super. Normal method may not be applied to determine how many ceiling cavities are.

If you are on this camp, talk to your defined benefit super provider. They will be able to provide accurate information about where you live in order to be clear in which room you leave.

Finally, some defined benefit funds are not “taxed”. Although this does not change the methodology for the transfer balance limit assessment, the defined benefit changes how the income from the pension is handled.

As a result, the defined benefit is that there is a complexity at the point where you begin to retire from your retirement. Take some time to make sure you are sure how to work. According to my experience, the defined benefits are very useful for the funds themselves, but ask for professional help when necessary.

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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