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I am retired. am over sixty. am I better to leave my super with the fund where it is currently held or would I be better to to put it into a bank investment account?
Responses
Hi Carmel,
You would pay less tax keeping your investments inside super.
At 60 and being retired you will now be able to draw down from your super tax free if in pension phase giving you a tax free income stream. Capital gains on earnings are taxed more lightly than outside super.
If you were to withdraw the funds from super and invest it in a non-super investment you would be subject to income tax. Capital gains would be taxed at the same rate.
The amount you have in super and your income requirements really need to be considered as well as your investment strategy.
I hope this was helpful, let me know if you have any further questions.
Stuart Christie
Financial Planner
https://www.linkedin.com/in/stuartchristiefinancialplanner/
Hi Carmel,
Its probably quicker and easier to give you a quick call and run through the scenario over the phone. Or you're welcome to contact me our office line is 07 3144 3100.
Stuart
being retired on a pension how would i pay tax if i am not working. the amount it would earn in interest if invested say for 12monhts doubt it would earn over the amount i can earn before my pension is affected. at my age i can take the full amount out of the super fund without penalty? I'm over 65.
sorry Stuart I think my question was a tad short on facts. Thank you for your reply.
A married couple on the pension can own their own home and have $816.00 (odd)
in declarable assets ie vehicles, furniture, cash in the bank, any superannuation accounts. (did I miss anything?) so if they currently live on the pension with no other income and they have a small amount in a super fund, is that the best place to leave it for the time being., or place it in an investment account elswhere for say 12mths? ( perhaps a bank eg)
they are aware that if that lump sum earns enough interest to put there assests over the limit then that is another scenario? At the moment their total assests with the super account and all other assets is nowhere near 816,000. thanks Carmel B