Learn how defined benefit super works and what it could mean for retirement.
What is defined benefit super?
Defined benefit super is a can work together to fund your retirement including account-based pensions and lifetime income streams.
Before making changes to your defined benefit super
Defined benefit accounts can offer benefits that other super accounts don’t.
Making changes may affect:
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your future retirement income
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your access to pension benefits
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the tax you’ll pay
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benefits for your partner or dependants.
Before you decide, contact your fund and consider speaking to us for financial advice.
High-pressure sales tactics are putting your super savings at risk. Be on red alert for phone calls, click bait advertising and promises of unrealistic returns to encourage you to put your super into risky investments. Stop, think carefully, and check the claims first.
Questions to ask your fund
Every defined benefit fund works differently. Your fund can explain how your account works.
You may want to ask:
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how your benefit is calculated
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what options you have at retirement
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whether you can receive a pension, lump sum or both
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how your benefit may be taxed
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what happens if you leave the fund or transfer your benefits.
Source: Moneysmart
Reproduced with the permission of ASIC’s MoneySmart Team. This article was originally published at https://moneysmart.gov.au/how-super-works/defined-benefit-super-explained
Important note: This provides general information and hasn’t taken your circumstances into account. It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person. Past performance is not a reliable guide to future returns.
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