Receive a pension from your Super Fund while you work

QUESTION: Last week you explained that I am able to structure my retirement income so it comes from a tax-exempt superannuation fund.

I am 58 and still working and my adviser has suggested pumping as much money as I can into my Super over the next few years. The problem I face is I still need money to live now.

Is there any way I can start drawing a pension from my Super Fund before I retire?
ANSWER: One of the pension types covered by the LawCentral Pension Pack (created in conjunction with Self Fund) is a Transition to Retirement Income Stream (or TRIS). http://www.lawcentral.com.au/CreateDoc/createlink.asp?docId=214

The great advantage of a TRIS is you can take a pension from your Super Fund at the same time as you are putting money into it. This means you can sacrifice most of your salary as contributions to your Super Fund (and in the process reduce your tax on your employment income). You can then top up your income with a pension from your Super Fund.

Talk to your accountant about the tax advantages that come with a TRIS (you may like to ask him or her about the Pension Rebate that means you can get a tax-free income of around $30,000 from your Super Fund).

Click here to have a look at our Pension Pack and read the hints -- they tell you how a TRIS operates and how you can change it to an Account-Based Pension later.

For our members who have upgraded to Platinum (http://www.lawcentral.com.au/PlatinumMembership/PlatinumMembershipApplicationFo­rm.pdf), read all there is to know about TRIS here.

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