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 joined FNN in January 2017 with a passion for equities and funds management. As Head of News, she has been a broadcast journalist for over seven years, specialising in finance. She was a journalist with Sky News Business, ABC 1, ABC's The Business and ABC24. She’s also worked as a TV reporter for Prime 7 and WIN News. Jessica has worked as a financial planner and real estate agent.