Pain For Retirees With Defined Benefit Pensions

Based on feedback from last weekend's column, the government's proposed reforms for defined benefit (DB) pensions have come as a major surprise to many who have these classic superannuation income arrangements in place.

The big surprise is in the proposal to establish a capital value for DB super pensions and the lower concessions this will mean for higher-income earners, including judges, politicians and senior public servants.

The proposed rules will particularly hit individuals who also have private super arrangements, such as a self-managed fund or an account with an industry super fund. The column prompted a range of questions as basic as "Where did this information come from?".

#Pension #Retiree #Superannuation

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