Superannuation Discussion + market volatility

[SydneySwan]

Thanks @mrsterryn passiveinvesting link is excellent

So if I create a TTR account with $1.8M from Accumulation account A
I can withdraw $120K a year (between 4-10% withdrawal allowed). And recontribute it to a new Accumulation Account B as a non concessional contribution NCC.

After 5 years, commute balance back to A before age 65

At age 65 the pesky Transfer balance cap starts rearing its head. And at age 75 no longer able to make non concessional contributions. At Age 65 Withdraw $360k from A and make a NCC to B.

So the most I can wash is $360 at 65,68, 71,74 = $1.44M + the $600k from the TTR period = approx $2M
(Assuming the superfund allows this and NCC annual limit remains at $120K)

If using Pension account, In order to remain within the personal TBC, need to commute the $120K per year or $360 /3 years back to A (rather than withdraw) then withdraw from A and recontribute as NCC to B.

In order to minimise the number of pension accounts need to commute back to B if amounts are all NCC or back to A if concessional contributions, then recreate the pension accounts.

PITA

Can someone confirm please...

I have an acquaintance who spends his life converting (or trying to) taxable super into non-taxable. He is particularly bitter that super growth income is treated as a taxable component. I have told him so many times to just enjoy his retirement.

 

[RSD]

But not if they then claim the pension? Along with all the benefits that entails.

Very few benefits if living overseas - just the $ each fortnight.

If the government was smart they would find ways to encourage pensioners to live overseas - would save the government a fortune in the benefits!

 

[Pushka]

Very few benefits if living overseas - just the $ each fortnight.

If the government was smart they would find ways to encourage pensioners to live overseas - would save the government a fortune in the benefits!

Well the dollars received are worth it. And you can always return if medical conditions arise. Which will happen eventually. Sorry but I honestly can't see why the Govt would change the rules. I don't see the savings.

 

[RSD]

Well the dollars received are worth it. And you can always return if medical conditions arise. Which will happen eventually. Sorry but I honestly can't see why the Govt would change the rules. I don't see the savings.

My understanding is that if you return there is a significant Medicare exclusion period.

 

[Quickstatus]

If the government was smart they would find ways to encourage pensioners to live overseas - would save the government a fortune in the benefits!

Not sure how that would be a net benefit to the Guvment, taxpayer or the economy.
You only lose immediate Medicare cover if you have live abroad for 5 continuous years or more - easy to re-enrol on return and likely no waiting period if you can show you are returning permanently.

 

[Flyfrequently]

They are moving their platform in mid April and no one will have any visibility over their superannuation portfolio, nor be able to take out lump sums, for 6 weeks! Those on pension draw down will get three fortnight pays in mid April and then nothing again until it's up and running again. Only found out last Monday. The Ombudsman is taking enquires about it.

Interesting to know @Pushka glad I bailed from HESTA when I properly retired