Hi Craig, If my super fund with a 60 per cent taxable component is converted totally into pension mode, will this pension fund also have 60 per cent taxable component?

And, heaven forbid, if I die soon after and my adult child inherits my pension super, will he then have to pay tax on the 60 per cent portion?

Hello, that is correct.

If your accumulation account is currently 60 per cent taxable and 40 per cent tax-free, the same split will generally apply when you start a pension with those funds.

There are a few important points to keep in mind.

While your super is in accumulation phase, investment earnings are added to the taxable component, so the taxable percentage may increase over time unless you make after-tax, non-concessional contributions.

Once the funds move into pension phase, the taxable and tax-free proportions are fixed and generally do not change.

From age 60, pension payments and lump sum withdrawals you receive are generally tax-free.

However, if you die........

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