Sequoia Financial Group’s Marcel Collignon speaks at the SMSF2017 Summit & Investment Expo, Sydney


by Jessica Amir

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The two biggest and most common questions that we get from our clients are around the pension changes. The change to tax free amount that investors are able to access once they retire. The $1.6 million cap that came in means there is a limit to tax free earnings that a super fund can generate.

It created a little bit of confusion, particularly for those that are approaching retirement or who are in retirement. But at the end of the day it’s still fairly fair.

With the $1.6 million tax free, if you are earning 4 per cent income, it’s around $60,000-$65,000 a year if you can generate a 4 per cent return out of your super fund. Between a couple that’s around $120,000 tax free. People shouldn’t necessarily be too upset about that. And anything beyond that is still only taxed at a very low 15 per cent, so it’s not the end of the world.

Jessica Amir

Finance News Network
Jessica presents the Market Outlook and company news. She joined FNN in January 2017. She has been in broadcast journalism for over five years. She has worked as a journalist with Sky News Business, ABC 1 and ABC24. She has also worked in regional Australia for Prime 7 and WIN News. She is also a qualified financial planner and a Masters of Applied Finance student.