Starting pensions is the main game in an SMSF but they are often also commuted (stopped). The driver might be a desire to move to another superannuation fund, combine the pension with new contributions or just stop getting so much income from super.

Pensions can run for many years but that doesn’t always mean that every payment drawn from a pension account is a pension payment. Sometimes lump sums (partial commutations) can be invaluable but it pays to know the rules. These are our top 5 tips.

Since 1 July 2017, $1.6m has been a magic number in superannuation for all sorts of purposes, most notably the general transfer balance cap. Now that this has increased to $1.7m from 1 July 2021, what happens to other rules like segregation?

With no news in this month’s Federal Budget, we had assumed the temporary halving of the minimum pension draw down rates would cease on 30 June 2021 (as currently legislated). However, the Government has now announced an extension for one more year.

The announcement of a two year amnesty, possibly starting as soon as 1 July 2022, was music to the ears of anyone dealing with market linked, complying lifetime or complying life expectancy pensions.

It feels like this has taken a lifetime but finally the Government has announced it will do something meaningful about allowing members with so called “legacy pensions” to restructure their affairs.

When SMSFs have finished their useful life and are being wound up, doing so before the next 30 June rolls around is a common objective. What are the top issues to consider this year?

The conventional wisdom is that most people who can start retirement phase pensions should do so as soon as possible. Here are a few things to weigh up when deciding whether or not to start a pension before 1 July 2021.

There are some occasions when a pension can be paid to a person well before retirement, but timing matters and it’s important to understand the system’s quirks.

The general TBC will increase to $1.7m from 1 July 2021. The quirky method for translating that to individual clients will create plenty of confusion. It is fertile ground if the government really is keen to simplify laws and remove red tape.

A standard account based pension can offer members the opportunity to take commutations – a lump sum now in exchange for lower income stream payments in the future. Why do we care whether it’s a partial commutation or a full commutation?

Almost all pension members will occasionally draw more than the minimum pension amount in a given year. If so, it is critical to think carefully about how those extra payments should be treated and documented before taking the payment.