Retirement pension, transition to retirement and superannuation

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What is a retirement pension, and which retirement pension is suitable, are common questions as people plan for retirement. Australian Catholic Superannuation offers a retirement planning service to …

What is a retirement pension, and which retirement pension is suitable, are common questions as people plan for retirement. Australian Catholic Superannuation offers a retirement planning service to help you understand how you can convert your superannuation into a pension for retirement.

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  • 1. Transition to retirement pension – seminars show how to plan for retirement See latest retirement seminar dates
  • 2. Transition to retirement pension – seminars show how to plan for retirementAttend the retirement planning seminarsYou don’t have to be a member of the Fund to attend the retirementplanning seminars – partners, friends and work colleagues are welcometo attend.Set out on the following pages are details of:1. A video testimonial from a past retirement planning seminar attendee2. How a transition to retirement pension can be a tax-effective way to boost your superannuation savings as you plan for retirement. More explanation will be provided at the seminars3. The benefits of the Australian Catholic Superannuation retirement planning and financial planning service.
  • 3. Australian Catholic Superannuation Transition to Retirement Pension Account He simply moved his superannuation savings into an Australian Catholic Superannuation Pension account Up to 15% tax is 0% tax is deducted from deducted from investment investment earnings in a earnings in a superannuation pension account accountwww.catholicsuper.com.au/retirement
  • 4. Australian Catholic Superannuation Transition to Retirement Pension Account The difference could save you thousands of dollars in tax – each year until you retire When your superannuation savings are converted into a pension account for retirement the investment earnings on funds in the pension account become free-of-tax. Rather than wait until retirement, perhaps at age 65, your retirement savings can start to earn tax-free income from age 55* - even as you continue to work. This is money that could be adding to your retirement savings, year after year as you continue working. In addition, salary sacrificing some of your income into your superannuation account and using pension income as replacement income can boost your retirement balance even more. The independent superannuation monitor, SuperRatings Pty Limited, has rated the Australian Catholic Superannuation pension as a Platinum level fund, the highest rating available. You can be confident knowing that our pension is rated so highly. * For members born before 1 July 1960For further details about an Australian Catholic Superannuation transition to retirement pension, or to arrange an appointment to meet with a financial planner, please contact us on 1300 658 776 or at www.catholicsuper.com.au
  • 5. Australian Catholic Superannuation Transition to Retirement Pension AccountAre you aged 55 years or more, still working, andwant to maximise your retirement savings?Example: Andrew is aged 55 and wishes to continue working full-time for severalmore years so that he increases his superannuation savings ahead of retirement. Hehas been saving in three different superannuation accounts for several years, but hefelt he could be doing better. After meeting with a financial planner at AustralianCatholic Superannuation he was advised to do two things:First, consolidate his three superannuation accounts into the one account withAustralian Catholic SuperannuationSecond, convert most of his newly combined superannuation balance into a transitionto retirement pension account.Andrew starts an Australian Catholic Superannuation transition to retirement pensionaccount with $350,000 (leaving $5,000 in his super account), and chooses to receivethe allowed maximum $35,000 pa (10% of his account balance) as a monthly pensionpaid into his bank account. In doing this Andrew saves tax because investmentearnings on his $350,000 in the pension account is now tax-free. For further details about an Australian Catholic Superannuation transition to retirement pension, or to arrange an appointment to meet with a financial planner, please contact us on 1300 658 776 or at www.catholicsuper.com.au
  • 6. Australian Catholic Superannuation Transition to Retirement Pension Account $350,000 balance in a $350,000 balance in a superannuation account pension account Investment return* - assume 6% pa after fees and charges but before tax $21,000 $21,000 Tax on investment earnings* - Year 1 Up to 15%, or $3,150 NIL Earnings available to compound As low as $17,850 $21,000* This is an example only. Actual investment returns and taxes vary depending on the investment option selected. This tax saving in year 1 is a boost to Andrew’s retirement savings. In addition to this tax saving on investment earnings, by using the monthly pension income Andrew can now afford to salary-sacrifice into his super account, increasing his retirement savings while reducing his taxable income For further details about an Australian Catholic Superannuation transition to retirement pension, or to arrange an appointment to meet with a financial planner, please contact us on 1300 658 776 or at www.catholicsuper.com.au
  • 7. Australian Catholic Superannuation Transition to Retirement Pension AccountImportant information: This information has been produced by SCS Super Pty Limited (ACN 064 712 607, AFSL230544, RSE L0002264), the Trustee of the Australian Catholic Superannuation & Retirement Fund (ACSRF). Itdoes not take into account your own objectives, financial situation or needs. As a result, before acting on anyinformation in this document, you should consider its appropriateness, having regard to your own objectives,financial situation and needs. This document is not intended to be financial advice, therefore, you shouldconsider obtaining independent financial advice before making any decisions about your benefits in the Fund.Tax savings illustrated are based on our understanding of tax regulations effective as at the time of printing andare subject to change. For further information on Australian Catholic Superannuation’s services refer to ourcurrent Product Disclosure Statements and Financial Services Guides. Financial planning services are providedunder an arrangement with Industry Fund Services Pty Ltd (IFS) (AFSL 232514).A transition to retirement pension may not be suitable for all members.All references to “pension” in this document refer to the Australian Catholic Superannuation & RetirementFund allocated pension.
  • 8. Australian Catholic Superannuation’s Financial Planning ServiceOur financial planning service is offered through an arrangement with Industry Fund Services(AFSL 232514). This service is provided by appropriately qualified planners on an hourly rate, fee-for-service basis. Our planners work only for a salary and no parties receive bonuses,commissions or trail payments. Our hourly rates reflect only what it costs us to produce yourfinancial plan, so we believe that they are very competitive.To read more about our financial planning andretirement planning service simply follow this link, orcall us on 1300 658 776