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When you retire, it is possible to take all or part of your benefit as
cash. This cash can be invested to meet your retirement needs.
You can elect to put your Lump Sum in the RBF Investment Account. This will provide you with the following benefits:
- Flexible payments - you can withdraw money easily.
- Member Investment Choice
- No entry and exit fees.
- Low administration fees.
- Favourable tax environment for earnings - you do not have to declare your
earnings from the account in your annual income tax return. If you are
receiving an income from another source, this may be a tax advantage. However,
when you withdraw money from the account, you may be charged some tax on
your earnings.
- Access to Allocated Pensions - you can convert all or part of your money
to an Allocated Pension. This is a flexible retirement product offered by RBF. With this option
you can choose your annual retirement income.
- Security for your dependants - when you die, the balance of your Investment
Account will go to your spouse or personal representative unless you have
elected for it to go to your estate. It will then be paid in accordance
with your will.
How long can I leave my money in the RBF Investment Account?
After you have retired, you can leave your money in the RBF Investment Account
and make additional contributions, if you are:
- under age 65; or
- aged 65 but less than 75 and have worked at least 240 hours in the
previous financial year.
In most cases on reaching 75 benefits must be paid out as soon as practicable.
Is there tax on Lump Sum payments?
Your lump sum will consist of several components, which are taxed differently.
Contact us to find out more about the taxation of lump sum payments.
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