Planning to retire soon?
The pension phase of your SMSF is a significant milestone in your retirement journey — it’s when you make the shift from growing your retirement savings to accessing them as a source of income.
Once you meet the eligibility criteria for accessing your super, you can begin withdrawing from your SMSF. However, there are things you’ll need to consider as this affects how your SMSF is taxed and managed.
The need to access your super at retirement can cause some challenges, particularly as it requires cashflow to make your mandatory minimum income payments. For example it can be difficult to place a value on certain investment assets you might hold in your SMSF (like artwork), or to sell only portions of them (like property), in order to determine and pay the correct amount.
As an SMSF member and trustee it will be your responsibility to plan for and manage these things. For many, retirement therefore is a chance to reassess their financial situation and decide if an SMSF alone is still the most convenient option.
If you’re considering your retirement options, and the roles of an SMSF and a super fund, Equip Super’s Financial Planners can help.
