I have reached 60 and now working 29 hours/wk. I will start a TTR account once my FY24 tax is done on my SMSF super fund. It seems that the TTR pension balance is not limited to 1.9m as in the pension income stream account. Between now and 65 I will contribute 30,000 towards super and draw the equivalent out + balance of 4%. It will be like another me working and bring home twice as much the money. Definitely can tidy up some debts, and spend some money in home maintenance.
As far as I'm aware, defined benefit pension is fully taxed at income margin rates so unless you have normal defined contribution super balance or want to start one, a TTR won't do anything for you . However, you could start super account to complement your defined benefit and then start new job.
I work 18 hrs a wk. Id also get the same income using super, savings, & any centrelink payments that I'd be entitled to if applicable as I do working . At this stage, I don't need to access super, savings , centrelink payments if I'm entitled to them etc . I'm debt free,, live overseas 3-5months a yr as I do humanitarian work, then come home, work for a few months & go again. I got divorced yrs ago, lost a substantial Six Zero amount of assets & will unlikely fully recover from that . But at least I'm not struggling , but no longer have substantial assets . I'll work for as long as I'm able to
A question if I may Mr Superguy If I close one super account and withdraw super after age 60 can I put it back into my other super account the same year and claim a tax deduction
If you're 60 or over, still working and don't need the extra income, keeping your super in the accumulation phase might be better than starting a TTR Pension. This is because BOTH pay 15% tax on earnings and 10% CGT within the fund. Continue to sacrifice your salary plus your employer's SGC (up to $30K pa) to benefit from compound interest and growth. That's why Berkshire Hathaway is one of the best-performing stocks over 50 years... it pays NO dividends. TTR Pensions potentially stop the benefits of compounding. If you are NOT working and permanently retired, a normal Allocated Pension is worthwhile because the fund pays no tax on earnings or CGT.
I have now started a TTR and in the first instance drew out about 3% of the balance, and between now and end of FY up to 4 or 5% in total. Since the fund earns more than 5% per year, the balance should not drop. Have a few big ticket item such as child's wedding expense, planning for new kitchen etc. Some of the balance would go towards the ¨2 years expense in cash" bucket.
When I retire and, for example, had $500k in super and decided to take $50k per year, how much tax is paid? Figures used for simplicity. Is it classed as an income at 19% tax rate?
@@dieterkem7894 Your employment income is still taxed normally but your super income is not taxed. What you can do though is sacrifice more income into your super fund and lower your income tax.
You actually ‘roll it over’ to a new superannuation provider. You don’t actually withdraw it and move it. Your new superannuation company will get you to fill in paperwork and do it for you.
You can contribute $30,000 this financial year tax free, plus what’s broadly known as Super Catch up from the previous 5 years. 4 of those at $25K per year and last financial year was $27K. So, if you didn’t contribute at all, or didn’t contribute up to the tax free limit, you can use those amounts to contribute tax free.
TTR tax ."CGT is reduced to 10% if the investment sold was owned for longer than 12 months". What investment are you talking about here ?? Up to this point you have discussed opening a TTR fund and transferring accumulation funds to it and drawing down from the TTR. Missed any info about "buying an investment and selling it".
Hi Chris, in your video you made reference a couple of times to age 65, but isn't the retirement age now 67 ? Maybe I misunderstood in what context you were referring to that age...so if you could clarify that for me, it would be very much appreciated. Kind regards, Mike (Perth WA).
To add a bit more context to the above comment: - 67 is the age you need to reach to be eligible for a government pension - 60 is your preservation age when you can access your superannuation to start drawing down on it. They are totally independent to each other.
Once you reach age 65, you can access your Super Benefit at any time whether you have retired or not. There are absolutely no restrictions to accessing your Super Benefit when over 65. Your Super Benefit can be accessed as either a Pension or Lump Sum withdrawal.
@SuperGuyAu Can I contribute monthly? and withdraw from TTR monthly as well? Is there any minimum initial contribution? I asked my superfund, they said minimum contribution is 50k and only once and final. Is that correct?
As long as you’re still working, however there are extra benefits being on a TTR once you reach 65, when you don’t have to follow the 4-10% minimum drawdown each financial year.
Hello, i am 60 and would like to know instead of withdraw TTR pension yearly can i draw lump sum in 5 years as i have not drawing it for the last 6 years?
I don't believe you have to work less hours. The point is you don't need to work as many hours if your employment income is supplemented by your super.
I have reached 60 and now working 29 hours/wk. I will start a TTR account once my FY24 tax is done on my SMSF super fund. It seems that the TTR pension balance is not limited to 1.9m as in the pension income stream account. Between now and 65 I will contribute 30,000 towards super and draw the equivalent out + balance of 4%. It will be like another me working and bring home twice as much the money. Definitely can tidy up some debts, and spend some money in home maintenance.
Great work Chris.
Maybe some advice on people like me on a Defined Benefit approaching 60 years old?
As far as I'm aware, defined benefit pension is fully taxed at income margin rates so unless you have normal defined contribution super balance or want to start one, a TTR won't do anything for you . However, you could start super account to complement your defined benefit and then start new job.
Awesome video. Thank you.
Glad you liked it!
I work 18 hrs a wk. Id also get the same income using super, savings, & any centrelink payments that I'd be entitled to if applicable as I do working . At this stage, I don't need to access super, savings , centrelink payments if I'm entitled to them etc . I'm debt free,, live overseas 3-5months a yr as I do humanitarian work, then come home, work for a few months & go again. I got divorced yrs ago, lost a substantial Six Zero amount of assets & will unlikely fully recover from that . But at least I'm not struggling , but no longer have substantial assets . I'll work for as long as I'm able to
Great! Very helpful!!! Thanks!
You're welcome!
A question if I may Mr Superguy If I close one super account and withdraw super after age 60 can I put it back into my other super account the same year and claim a tax deduction
Ohh looking at your thumb nail .. I can clearly guess your prediciment
This is not an uncommon strategy. You don't even need to necessarily close the super account.
@@SuperGuyAu thanks love your work
Thanks for the video. It was really helpful.
Glad you liked it!
If you're 60 or over, still working and don't need the extra income, keeping your super in the accumulation phase might be better than starting a TTR Pension. This is because BOTH pay 15% tax on earnings and 10% CGT within the fund. Continue to sacrifice your salary plus your employer's SGC (up to $30K pa) to benefit from compound interest and growth. That's why Berkshire Hathaway is one of the best-performing stocks over 50 years... it pays NO dividends. TTR Pensions potentially stop the benefits of compounding.
If you are NOT working and permanently retired, a normal Allocated Pension is worthwhile because the fund pays no tax on earnings or CGT.
Doesn’t reducing my hours before retiring impact payout of my long service leave?
I have now started a TTR and in the first instance drew out about 3% of the balance, and between now and end of FY up to 4 or 5% in total. Since the fund earns more than 5% per year, the balance should not drop. Have a few big ticket item such as child's wedding expense, planning for new kitchen etc. Some of the balance would go towards the ¨2 years expense in cash" bucket.
2 year expense in cash bucket ?
I would quit work at a days notice if I could afford to.
When I retire and, for example, had $500k in super and decided to take $50k per year, how much tax is paid? Figures used for simplicity. Is it classed as an income at 19% tax rate?
If you fully retire from the workforce, have reached your preservation age and are aged 60 + then you will pay 0 tax.
What happens if u still working
Is the ttr payments still tax free ?
@@dieterkem7894 Your employment income is still taxed normally but your super income is not taxed. What you can do though is sacrifice more income into your super fund and lower your income tax.
@SpookFilthy thanks for explaining
@@SpookFilthybut is the maximum still $30,000 ?
You actually ‘roll it over’ to a new superannuation provider. You don’t actually withdraw it and move it. Your new superannuation company will get you to fill in paperwork and do it for you.
Your money stays with the same provider, just moves from the accumulation fund to an income fund. That's what happened with mine.
Can I put all my salary in to my super and draw between the 4&10% from the TTI to reduce tax
You can contribute $30,000 this financial year tax free, plus what’s broadly known as Super Catch up from the previous 5 years. 4 of those at $25K per year and last financial year was $27K. So, if you didn’t contribute at all, or didn’t contribute up to the tax free limit, you can use those amounts to contribute tax free.
thanks for that advice mate
Any time!
TTR tax ."CGT is reduced to 10% if the investment sold was owned for longer than 12 months". What investment are you talking about here ?? Up to this point you have discussed opening a TTR fund and transferring accumulation funds to it and drawing down from the TTR. Missed any info about "buying an investment and selling it".
Hi Chris, in your video you made reference a couple of times to age 65, but isn't the retirement age now 67 ? Maybe I misunderstood in what context you were referring to that age...so if you could clarify that for me, it would be very much appreciated. Kind regards, Mike (Perth WA).
67 is the age where government pension is accessible. Nothing to do with full access to own super fund.
To add a bit more context to the above comment:
- 67 is the age you need to reach to be eligible for a government pension
- 60 is your preservation age when you can access your superannuation to start drawing down on it.
They are totally independent to each other.
Once you reach age 65, you can access your Super Benefit at any time whether you have retired or not. There are absolutely no restrictions to accessing your Super Benefit when over 65. Your Super Benefit can be accessed as either a Pension or Lump Sum withdrawal.
There is no retirement age. You are thinking of the pension eligibility age.
Not quite independent - you have to be over 60 to be 67!
Are the TTR pension payments tax free if you have your super in Westate?
Hi, is TTR applicable for someone who is still working full time at the age of 60? Thank you.
Yes. As long as you are age 60 or above a TTR pension is an option for someone with a superannuation accumulation account.
@SuperGuyAu Can I contribute monthly? and withdraw from TTR monthly as well? Is there any minimum initial contribution? I asked my superfund, they said minimum contribution is 50k and only once and final. Is that correct?
@SuperGuyAu thank you again
how long can you be on a ttr pension for?
60-65
As long as you’re still working, however there are extra benefits being on a TTR once you reach 65, when you don’t have to follow the 4-10% minimum drawdown each financial year.
I done job share for just over one year and the only problem is you still have to go back to work 🥴
The tax on TTR vs lump sum would make this cost prohibitive. Wait until you are 60 for tax free...
Hello, i am 60 and would like to know instead of withdraw TTR pension yearly can i draw lump sum in 5 years as i have not drawing it for the last 6 years?
No. You cannot draw lump sums from a TTR account. Only min of 4% to %10 max per financial year.
Hello
But I have not doing any withdrawals for the last 5 years
Can't see link
ua-cam.com/video/N7vP_qs55FI/v-deo.html
Hi, which link are you after?
A TTR won’t work unless your employer allows you to work reduced hours.
How so ?
I don't believe you have to work less hours. The point is you don't need to work as many hours if your employment income is supplemented by your super.
You can still work full-time if you want, there's no obligation to work less hours once you're 60 unless you want to.
You can access your full account based pension if you cease work at age 60 👍
Yes you can but sequence of return risk may apply when you start drawing down on your funds.