Already a subscriber?Q: I was expecting the recent federal budget to include important promised changes to legacy superannuation pensions. I have one of these –. What are the chances of this happening or have they been forgotten? Can you explain how this might affect me and whether I have any options to deal with this? Bruce.
In summary, a member has full access to their account-based pension with any payments withdrawn exempt from tax for anyone aged 60 or over. When market-linked pensions were all the rage, how income payment and terms could be calculated was unbelievably complicated and certainly required detailed financial advice.
Almost 20 years on, there still remains a cohort of market-linked pensions with long payment terms, says Crump, as well as a legacy pension category described as lifetime defined benefit pensions.
This would significantly simplify the member balances or even allow them to withdraw what might be a small locked-in balance.