Part 3/7:
- Pension Phase: At retirement, you transition to the pension phase, where you begin drawing money from your superannuation to replace income from employment. Understanding the shift from accumulation to pension is crucial for effective financial planning.
Tax Benefits of Superannuation
One of the main advantages of superannuation in Australia is its favorable tax treatment. During the accumulation phase, investment earnings within your super fund are taxed at approximately 15%. Conversely, once you enter the pension phase and are over 60 years of age, your superannuation becomes tax-free—both for the funds in your account and the income you draw, with only a few exceptions.