The $0 Super Mistake I See Too Often
I notice it a lot with retirees in the Redlands: paying tax inside their super when they don’t need to.
Here’s the scenario: someone retires, leaves their super in the same fund, and starts drawing money out. Seems harmless… until I point out the fund is still in accumulation mode. That means earnings are being taxed at up to 15% per year.
Move that same money into an account-based pension, and the tax can legally drop to zero. Same fund. Same investments. Just a different “mode.”
Over time, this small tax quietly adds up to thousands of dollars lost. And the most common thing I hear:
“I thought my super was already tax-free when I retired.”
Not always.
If any of this sounds familiar, or if you have a question you’d like me to tackle in a future edition of ‘Insights from Troy,’ I’d be happy to hear from you. Sometimes a quick 10-minute conversation can save years of regret.
Got a retirement question for Troy?
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