PENSION Product Disclosure Statement
Investment: You have multiple investment options - including pre-mixed options - to make it super simple
Tax - TRP: Investment earnings within the fund are taxed up to 15%, but if you’re fully retired, super investment earnings are generally tax free1
Getting paid: You decide the amount you get paid and how often – monthly, quarterly, half-yearly or annually2
Withdrawing: You can withdraw3 some or all of your smartMonday PENSION retirement balance at any time
Tracking: Easily track your progress and full account details on your Personal Home Page
smartMonday PENSION
With smartMonday PENSION you can receive regular income payments (with no maximum annual payment limit) in retirement while your super stays invested, giving you the potential for more investment returns throughout your retirement.
To have reached your preservation age and be permanently retired or meet a condition of release.Is this the right option for you? Ask your financial adviser; or if you don’t have one, talk to a smartCoach.
Contact a smartCoach today on 1300 262 241, or email smartCoach@smartMonday.com.au.
If you like the thought of retiring but aren’t ready to stop work just yet, a transition to retirement pension (TRP) might be the solution. Your payments must total between 2% and 10% of your total account balance each year and are dependent on your age – these are limits set by the government.
To have reached your preservation age.Is this the right option for you? Ask your financial adviser; or if you don’t have one, talk to a smartCoach today on 1300 262 241, or email smartcoach@smartmonday.com.au.
Wouldn’t it be better to pay off the mortgage first instead of converting your super savings to a pension? It’s a frequently asked question. While our smartCoaches can’t provide advice on products outside of super they can help to ensure you have the facts you need about your super to make the right decision for you.
For example, if the investment returns from your smartMonday PENSION are higher than the interest on your mortgage then paying off the mortgage might not be the best option.
1 Tax on pensions can be complex and taxation laws can change from time to time. Under current tax laws (March 2020) no tax is payable by the trustee on the investment earning in a retirement pension. Tax on notional earnings, on amounts in excess of a Government limit on the amount of money that can be held by an individual in a tax-free retirement phase, may be payable by a member, depending on their circumstances. You should consider speaking with a financial adviser for tax advice specific to your personal circumstances.
2 There are limits that apply to the payment of some pensions. TRP pensions have a maximum annual income payment limit of 10% of the account balance calculated at the start of each financial year. No maximum annual income payment limits apply to a full retirement pension. Both TRP and full retirement pensions have minimum annual income limits that change with a member's age. For more information on minimum and maximum payment limits within retirement pensions see the ‘How your pension works’ section in the smartMonday PENSION Product Disclosure Statement.
3 The standard minimum drawdown has been reduced by (approximately) half, for financial years 2019/20 and 2020/21.
