Category: Superannuation

Preservation age is the age a member must reach before their super can be accessed. The main catalyst for penning this wealth pipeline was to remind our clients that as of 1st of July 2015, the preservation age will commence to increase from age 55 up to 60.

It is a common misconception that superannuation interests automatically form part of your estate upon your death. This is not necessarily the case. Ultimately, the superannuation fund’s trustee determines where a superannuation death benefit is paid. Depending on the superannuation fund, it may be possible to fetter the trustee’s discretion with a binding death benefit nomination.

The Financial System Inquiry (FSI) which is commonly referred to as the Murray Report was released by Joe Hockey on the 7th of December.  It contained 44 recommendations for the Government to consider.  The Government will undertake a public consultation seeking stakeholder views in order to assist them in shaping their response.  The Government has stated that it expects to complete its review by March 2015.

Superannuation death benefits (inclusive of any life insurance held by a superannuation fund on behalf of a member) generally do not form part of the deceased’s estate.  It is paramount that members of superannuation funds put mechanisms in place to ensure their superannuation interests are distributed efficiently and according to their wishes in the event of their death.

This month’s wealth pipeline was intended to continue our discussion on mitigating sequencing risk.  However, due to the recent mid-year budget announcement by the Government, our discussion on mitigating sequencing risk will resume next month.  This wealth pipeline focuses on the superannuation aspects of the mid-year budget.