Ask the Expert: How reducing your taxable super can save thousands down the track

Convert ‘taxable’ components into ‘tax-free’ super components – your beneficiaries will thank you. Photo: Getty

• Question 1: I’m over 60 years of age, currently have an accumulative super fund and intending to convert to a pension fund. I’ve been advised after I convert to a pension fund to withdraw the full amount (close the fund) to then open a new pension fund and deposit the withdrawn money into this new fund. The reason given is that if the money is left in the existing pension fund and in the event of me dying, money remaining in the fund and withdrawn by others (beneficiaries) is taxable at the marginal rate. Is this correct and what are the tax implication of remaining money left in pension funds when the individual dies? Regards, Dave

Hi Dave,