In superannuation, the "pension mode" or retirement phase,...

In superannuation, the "pension mode" or retirement phase, allows you to access your super as an income stream, with investment earnings generally tax-free, but there's a cap on how much you can transfer.

Here's a more detailed explanation:

• What is Pension Mode?

  • Pension mode, also known as the retirement phase, is when you start withdrawing your superannuation as an income stream instead of holding it in an accumulation account.
  • This is typically done when you retire or reach a certain age and meet a condition of release.
  • You can choose to start a super income stream (or pension) and receive regular payments.
• Tax Advantages:

  • Investment earnings within a superannuation pension account are generally tax-free.
  • This contrasts with the accumulation phase where investment earnings are taxed at a maximum of 15%.

  
  
  
  
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