Pensions planning toolkit – A guide to executing the right pension for your clients

National Conference 2022

Paying a pension can be as simple or as complex as you want to make it within an SMSF; it all comes down to your client’s strategy. The key issue is whether their strategy has contemplated all there is to contemplate at both establishment and on an ongoing basis.

This session 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

At the end of this session, you will be able to understand:

  • There is no one size fits all model for SMSF pensions;
  • Poor decisions can have taxation and/or social security implications for members and beneficiaries;
  • The importance of pension documentation, and;
  • How the fund’s investment strategy must align with the member’s retirement income strategy.

The contents of this resource are taken to be correct at the time of publication.

Disclaimer: Technical Papers contain general advice only and are prepared without taking into account particular objectives, financial circumstances and needs. The information provided is not a substitute for legal, tax and financial product advice. Before making any decision based on this information, you should assess its relevance to the individual circumstances of your client. While the SMSF Association believes that the information provided is accurate, no warranty is given as to its accuracy and persons who rely on this information do so at their own risk. The information provided in this bulletin is not considered financial product advice for the purposes of the Corporations Act 2001. © SMSF Association