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I AM 64 and living on an account-based pension where capital injections are disallowed. I have realised the tyranny of the GFC has taken its toll on the tax-free investments in my account-based pension so I wish to revert to transition-to-retirement. Do I set up a new accumulation phase account and a new pension account? What happens to my current account-based pension?

I AM 64 and living on an account-based pension where capital injections are disallowed. I have realised the tyranny of the GFC has taken its toll on the tax-free investments in my account-based pension so I wish to revert to transition-to-retirement. Do I set up a new accumulation phase account and a new pension account? What happens to my current account-based pension?

I cannot see what you are trying to achieve because your super is held in a tax-free area now and you are drawing a tax-free income stream. However, I agree the best way to boost your retirement funds is to continue working and salary sacrifice as much as possible to a new super fund. You could then start an account-based pension from that fund when appropriate. Keep in mind once you turn 65 you can access your super even though you are still working.

I am 57, working full time and supporting a family of four. I have paid off my home loan. My job is not stable. I have $250,000 in super. What should I do for my retirement? Should I invest in property by using my super and contribute upfront $50,000 in available cash? If my job continues I plan to retire at 65. Are there any benefits in retiring before 65?

You will not be able to access your super unless you sign a statement that you intend to retire permanently. If you did access it now you would be liable for tax of 16.5 per cent on that part of the taxable component that exceeds $165,000. It can be dangerous to borrow at your age, so I would be cautious about gearing into property. There are no benefits in retiring before 65. In fact, if you work after 65 you will be better placed to accumulate funds.

Noel Whittaker, AM, is a co-founder of Whittaker Macnaught. Advice is general and readers should seek their own professional advice. Contact noel.whittaker@whittakermacnaught .com.au.


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