Whether it is legislated or not, the primary purpose of superannuation is to pay a benefit, preferably via a pension, to the members of a fund once they retire or obtain a certain age (65).  Paying a pension can be as simple or as complex as you want to make it within an SMSF, it all comes down to the client’s needs and subsequent strategy.  The key issue is whether their strategy has contemplated all there is to contemplate at both establishment and on an ongoing basis.  With the Government extending the 50% discount on minimum pensions for a further 12 months and new contribution rules from 1 July 2022 expanding the capacity to contribute well into retirement, there is no better time to review the key issues associated with paying a pension from an SMSF.

This webinar will work through the strategic advantages and disadvantages of the following concepts attributable to account based pensions, including transition to retirement income streams:

Multiple pensions v commute and repurchase

Lump sum withdrawals v excessive pension payments

Discretionary pensions v reversionary pensions

It will also provide a friendly reminder of the impacts that certain actions taken by members and trustees may have on any social security benefits they may receive.

Leaning Outcomes:

At the end of this webinar, participants will understand:

there is no one size fits all model for SMSF pensions

that poor decisions can have taxation and/or social security implications for members and beneficiaries

the importance of pension documentation and investment strategy

the factors that distinguish reversionary from non-reversionary pensions

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