Pension phase tax savings
Often we see clients that remain in accumulation phase with their superannuation because they do not require funds. This is mostly because they remain in the workforce or have income from other sources. We routinely save clients thousands of dollars annually by recommending a number of steps, often establishing an account based pension for one or more of the members.
Case study 4
Mr and Mrs Peters are over age 60 and both remain "employed" for superannuation contribution purposes. They have over $2 million in their self managed superannuation fund and have no need for any income from the fund.
In 2006 we recommended a strategy which included commencing an account based pension for both members of the fund. As a result, Mr and Mrs Peters now save over $15,000 per annum of income tax within their fund each year.
