Tax savings with a Transition to Retirement Allocated Pension account can be significant

How did Andrew save so much money in superannuation tax?

Superannuation & Allocated Pension Tax Savings

He simply moved his superannuation savings into an Australian Catholic Superannuation Pension account

Australian Catholic Superannuation Transition to Retirement Pension Account

0% tax is deducted from investment earnings in a pension account

Up to 15% tax is deducted from investment earnings in a superannuation account

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Australian Catholic Superannuation Transition to Retirement Pension Account

The difference could save you thousands of dollars in tax – each year until you retire

When your superannuation savings are converted into a pension account the investment earnings on funds in the pension account become free-of-tax. Rather than wait until retirement, perhaps at age 65, your retirement savings can start to earn tax-free income from age 55* - even as you continue to work.

This is money that could be adding to your retirement savings, year after year as you continue working. In addition, salary sacrificing some of your income into your superannuation account and using pension income as replacement income can boost your retirement balance even more.

The independent superannuation monitor, SuperRatings Pty Limited, has rated the Australian Catholic Superannuation pension as a Platinum level fund, the highest rating available. You can be confident knowing that our pension is rated so highly. * For members born before 1 July 1960

For further details about an Australian Catholic Superannuation transition to retirement pension, or to arrange an appointment to meet with a

financial planner, please contact us on 1300 658 776 or at www.catholicsuper.com.au

Are you aged 55 years or more, still working, and want to maximise your retirement savings?Example: Andrew is aged 55 and wishes to continue working full-time for several more years so that he increases his superannuation savings ahead of retirement. He has been saving in three different superannuation accounts for several years, but he felt he could be doing better. After meeting with a financial planner at Australian Catholic Superannuation he was advised to do two things:First, consolidate his three superannuation accounts into the one account with Australian Catholic SuperannuationSecond, convert most of his newly combined superannuation balance into a transition to retirement pension account.Andrew starts an Australian Catholic Superannuation transition to retirement pension account with $350,000 (leaving $5,000 in his super account), and chooses to receive the allowed maximum $35,000 pa (10% of his account balance) as a monthly pension paid into his bank account. In doing this Andrew saves tax because investment earnings on his $350,000 in the pension account is now tax-free.

Australian Catholic Superannuation Transition to Retirement Pension Account

For further details about an Australian Catholic Superannuation transition to retirement pension, or to arrange an appointment to meet with a

financial planner, please contact us on 1300 658 776 or at www.catholicsuper.com.au

$350,000 balance in a superannuation account

$350,000 balance in a pension account

Investment return* - assume 6% pa after fees and charges but before tax $21,000 $21,000

Tax on investment earnings* - Year 1 Up to 15%, or $3,150 NIL

Earnings available to compound As low as $17,850 $21,000

Australian Catholic Superannuation Transition to Retirement Pension Account

* This is an example only. Actual investment returns and taxes vary depending on the investment option selected.

This tax saving in year 1 is a boost to Andrew’s retirement savings.In addition to this tax saving on investment earnings, by using the monthly pension income Andrew can now afford to salary-sacrifice into his super account, increasing his retirement savings while reducing his taxable income

For further details about an Australian Catholic Superannuation transition to retirement pension, or to arrange an appointment to meet with a

financial planner, please contact us on 1300 658 776 or at www.catholicsuper.com.au

Australian Catholic Superannuation Transition to Retirement Pension Account

Important information: This information has been produced by SCS Super Pty Limited (ACN 064 712 607, AFSL 230544, RSE L0002264), the Trustee of the Australian Catholic Superannuation & Retirement Fund (ACSRF). It does not take into account your own objectives, financial situation or needs. As a result, before acting on any information in this document, you should consider its appropriateness, having regard to your own objectives, financial situation and needs. This document is not intended to be financial advice, therefore, you should consider obtaining independent financial advice before making any decisions about your benefits in the Fund. Tax savings illustrated are based on our understanding of tax regulations effective as at the time of printing and are subject to change. For further information on Australian Catholic Superannuation’s services refer to our current Product Disclosure Statements and Financial Services Guides. Financial planning services are provided under an arrangement with Industry Fund Services Pty Ltd (IFS) (AFSL 232514). A transition to retirement pension may not be suitable for all members. All references to “pension” in this document refer to the Australian Catholic Superannuation & Retirement Fund allocated pension.

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