When you reach Preservation Age you have the option of commencing a Pension Income Stream from your SMSF. A Pension simply means that periodically (e.g. each month or other period you nominate) cash is transferred from your SMSF Bank Account to your personal Bank Account to fund your living expenses. There are two types of Pensions you can commence in an SMSF as follows:
Generally, you must reach preservation age before you can access your super. Use the following table to work out your preservation age.
|Date of birth
|Before 1 July 1960
|1 July 1960 – 30 June 1961
|1 July 1961 – 30 June 1962
|1 July 1962 – 30 June 1963
|1 July 1963 – 30 June 1964
|From 01 July 1964
Simple Account Based Pension:
A Simple Account Based Pension (SABP) is an income stream that you receive from your SMSF when you reach age 65 or alternatively when you are aged between Preservation Age and 64 and "Retired".
Transition to Retirement Pension:
A Transition to Retirement Pension is an income stream that you commence in your SMSF when you are aged between Preservation Age and 64 and NOT "Retired". It is also known as a TRIS/TRAP.
For more information on commencing a Pension, please click here.