Moving accumulated superannuation benefits to pension phase is a common way to fund retirement income. If you have a self managed superannuation fund (SMSF), there are a few things you should think about when starting a pension.
What is an account-based pension?
An account-based pension is like a personal retirement income account operating in a superannuation fund. You receive regular income payments, while at the same time your account may earn investment income. Any investment income earned in pension phase is generally tax free.
Note that before you can start to receive a pension with your super benefits, you must have met a condition of release.
The most common conditions of release are:
Reaching your preservation age
Permanently retiring after reaching preservation age
Reaching age 65, or