Starting an account-based pension can be an important step when transitioning from saving for

Starting an account-based pension can be an important step when transitioning from saving for retirement to creating a regular income stream.

While working, superannuation in the accumulation phase generally benefits from concessional tax treatment. Moving eligible funds into an account-based pension may allow those funds to receive different tax treatment, depending on your circumstances and eligibility.

For those who have reached the required age and meet the conditions, an account-based pension can provide flexibility around how and when you receive income from your superannuation.

Many people choose to align their pension payments with the way they previously received their employment income, whether that’s weekly, fortnightly, or monthly.

Understanding how account-based pensions work can help you make informed decisions about turning your superannuation savings into a sustainable income stream for the future.

General advice only.

Amy Lehmann is an Authorised Representative (No. 1292710) of Consortium Private Wealth Pty Ltd (AFS Licence 495401).