Financial Planner Luke Smith joined 2CC Talking Canberra 1206AM in The Money Show which aired on Friday 12 February 2021. This week’s topic: What is an account-based pension and how does it work?  But before they start talking financial matters, Luke is more than just a little excited, he’s just taken his first ride in a helicopter and arrived at 2CC in the field next to the car park. You’ll hear in his voice how much he loved it. 

In recent weeks Luke has looked at growing your super. Last week he spoke about transitioning to retirement from full time work. This week Luke explores the account-based pension. Many Australian’s use this investment vehicle to turn their superannuation savings into a retirement income stream.

Key highlights include:

• You’re retiring from the workforce and you want to turn your super into pension payments to help fund your retirement
• Underlying investments don’t need to change – despite what some people might think
• Pension payments can be taken fortnightly, monthly, quarterly or even less often, depending on what your provider offers 
• Earnings on account-based pensions are tax free. And if you held shares or other investments in the fund, you don’t pay capital gains tax when you sell them in this pension phase. 
• The transfer balance cap however does apply if you have more than $1.6 million in your pension fund. 
• So what is the transfer balance cap and how is this tax calculated? 
• Why is the transfer balanced cap indexed? 
• Once you start a pension, can you add more contributions to super?
• What are the Centrelink implications of an account-based pension?
• It’s possible to have an account-based pension and a Centrelink pension, depending on your circumstances
• Explore the other benefits too – discounts on electricity, licensee fees and pharmaceuticals, they all add up
• Some strategies to think about while considering your own plan for retirement
• A free appointment offer to talk about your own financial planning goals. Everyone has different goals and financial planning advice can help you achieve them more effectively, especially when you link different strategies.

Listen to the Podcast right now

Also available on Apple Podcasts and Spotify ‘The Strategy Stacker – Luke Talks Money’

Do you need advice to set up a retirement plan?  

Luke as a Financial Planner can help you set up a financial planning strategy to help you achieve your personal financial goals. Retirement planning can be complicated, but the good news is you can make an appointment to speak with Luke about your superannuation and retirement strategy – including the account-based pension.

Envision 2CC offer:  Your first appointment is at our cost. Make an appointment to confidentially discuss your own investment, super or retirement goals. Call Envision Financial Services on 6260 4749. You can also use our contact us form to make an appointment for a confidential discussion about your situation.

Luke will return to talk about financial planning on 2CC next Friday. You can also catch up with The Strategy Stacker – Luke Talks Money podcast.  We look forward to your company again.

Luke Smith joined 2CC Talking Canberra 1206AM.
The Money Show aired on Friday 24 January 2020.

What a year it’s been. The podcast kicks off with Luke and Leon reflecting about the state of the world and how nice it would be for things to settle down. In the latest podcast, Luke explores some of the key things people should consider before retiring or at retirement when it comes to generating an income from super. Did you know that you can change providers? 

Key highlights include:

• What is a pension account or more formally called ‘account based pension’
•  How do you get one? 
•  Can you take a lump sum if you need to or is it just pension payments?
•  Can you change providers or are you stuck with your current super provider?
•  What are some of the key things you should look for in a pension fund?
•  Is there a minimum you need to withdraw from a pension fund over a year?
•  Are there strategies you might consider before setting up a pension or during a pension?
•  What is transition to retirement and super splitting and how might they help you retire?
• Make the most of your opportunities, as well as the offer to seek advice with Envision Financial.

Listen to the Podcast right now

Also available on Apple Podcasts ‘The Strategy Stacker – Luke Talks Money’

Do you need help in setting up or checking your retirement plan?

Let us help you get your retirement plans in place.

Envision 2CC offer:  Your first appointment is at our cost. Make an appointment to confidentially discuss your financial situation and  financial goals. Call Envision Financial Services on 6260 4749. You can also use our contact us form to make an appointment for a confidential discussion about your situation.

Luke will return to talk about financial planning on 2CC Talking Canberra next Friday from 4.30pm. Tune into listen live or visit our website again to catch up on the podcast. You can also check out our YouTube Channel at Envision Financial Canberra.

Once you retire, your transition to retirement turns into an account based pension. A transition to retirement strategy is worth considering as you approach life after work.

If you missed the discussion click here to listen to the podcast now.

The topical discussion of Franking credits is also touched on and how it is likely to impact self-funded retirees.

The acronym of the week is DPS – Dividend Per Share. It’s the income you earn from shares like ANZ or Commonwealth Bank. A high DPS will mean you have more income for your retirement and it’s something we consider when constructing retirement income streams for clients.

Contact Luke on 02 6260 4749 or use our contact us form to make an appointment for a confidential discussion about your situation.

Envision 2CC offer – Your first appointment is at our cost, so make an appointment to confidentially discuss your financial situation and retirement goals.

Luke will be back on 2CC Friday 13 April – 2CC 1206AM, at 4.30pm.