Many retirees take their super benefits by way of a regular income stream called a pension. The main reason for doing so is to meet a retiree’s ongoing need for income.
An advantage of an income stream paid through superannuation is that earnings accumulate on the first $1.6million are tax free within the fund (with the balance taxed at 15% in accumulation phase), as explained previously. If, instead, you withdrew the money and invested it in other investments you would likely pay tax on any earnings at your marginal tax rate.
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