Defined Benefit Super

By Handre Vlok – Principal Financial Planner at Altum Independent Financial Advice

Altum Independent Financial Advice helps clients understand their defined benefit options, model potential outcomes, and integrate these decisions into their broader retirement, tax and estate planning strategy

Altum Financial Services helps clients understand their defined benefit options, model potential outcomes, and integrate these decisions into their broader retirement, tax and estate planning strategy.

What We Focus On

• CSS, PSS, PSSap, MSBS and DFRDB considerations
• Understanding scheme entitlements
• Retirement planning considerations
• Pension versus lump sum considerations
• Taxation considerations
• Transfer balance cap considerations
• Integration with broader retirement strategies

We help Canberra and ACT clients better understand complex defined benefit arrangements and retirement planning considerations.

Additional Considerations

Different defined benefit schemes operate under different rules and benefit structures. Strategies should therefore consider:

• the relevant scheme,
• taxation implications,
• Centrelink interactions,
• retirement objectives,
• and current legislation.

Defined benefit retirement decisions can have long-term financial implications and should generally be reviewed carefully before retirement.

Book a 20-minute introductory call to discuss your financial goals, ask initial questions and consider whether financial advice may assist.

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Frequently Asked Questions

What is a defined benefit superannuation scheme?

A defined benefit scheme generally calculates retirement benefits using a formula based on factors such as salary, years of service, and scheme rules.

Are defined benefit schemes different from normal super funds?

Yes. Defined benefit schemes typically operate differently from accumulation-style superannuation funds and may involve pension entitlements and scheme-specific rules.

Are defined benefit pensions taxed differently?

Defined benefit pensions can involve different taxation treatment depending on the scheme structure, taxed or untaxed components, and legislative rules.

Useful Resources

Commonwealth Superannuation Corporation (CSC)
ATO – Taxation on Defined Benefits
MoneySmart – Superannuation and Retirement

General Advice Warning

The information on this page is general in nature and does not take into account your objectives, financial situation or needs. You should consider whether the information is appropriate to your circumstances before acting on it, and seek personal financial advice where appropriate. Taxation, superannuation, investment, insurance and estate planning considerations can be complex and subject to change. Where tax, legal or other specialist advice is required, you should seek advice from an appropriately qualified professional.