I had no idea where my lost super was or the names of the funds. I just new it was scattered everywhere and I should definitely have more than $3,000 in my super. Australian Super Finder found all 7 of my funds and now my balance is almost $50,000. Thank you so much for getting my super back on track. ? Leonie, Thomastown VIC

Super Facts and Tips

What are the Tax Benefits of a Transition to Retirement Pension?

You are planning for retirement and have a superannuation account. Youíre thinking what it is that you should choose as the best retirement funding option.

Difference between Common Structure and Transition to Retirement

When you set up one of the common structures of a retirement pension, you will pay tax on that. Whereas with superannuation, whatever your earnings are in the superannuation fund, you can lose up to 15% in tax. If youíre 60 or under, we know that your income is accessible but you will receive 15% tax offset which reduces the tax on what you might receive.

Now what we particularly combine with these particular studies is being able to combine salary sacrifice to the limits of the account youíre in. If we can divert some of your salary into superannuation, where itís taxed at 15%, and replace it with an income from transition to retirement pension, you can have the same income to live off, but will be able to pay much lower tax which will accelerate how much you will be getting into superannuation.

To summarize the benefits of the Transition to Retirement Pension:

• No tax on investment earnings within a Transition To Retirement pension account.
• Age 60 or under, pension income is accessible, but also receives an additional 15% tax offset.
• Age 60 and older, income is tax-free and non-assessable.
• Any salary sacrifice is taxed at a maximum of 15% - for many members this is a much lower tax rate than their personal marginal tax rate.

There are various ways of taking advantage of the tax benefits of a Transition to Retirement Option. You will find a lot of tips at www.australiansuperfinder.com.au

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