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Understanding the financial terms and jargon, and the vehicles required for your success. Knowledge is power and the key for you to be in complete control.

Here are some helpful explanations for terms you have heard before:

Age pension:

a social security benefit paid by the Federal Government to people who have reached the qualification age, being age 65 for men and between ages 63 and 65 for women, depending on when they were born. The amount of pension paid (if any) is determined by the income test and the asset test.

Allocated pension:

also known as an ‘account-based pension’. This type of pension allows you to withdraw regular income payments until your balance is reduced to zero. Allocated pensions are usually established using your super savings to fund your retirement, but may also be commenced using a non-preserved cash benefit, total and permanent disability payment, terminal illness benefit, or a death benefit.

The value of your account moves up and down according to the investment earnings you receive and the amount of income you withdraw. If you are 60 or over, you pay no tax on the income payments you withdraw. You are required to withdraw a minimum percentage as income each year, based on your age. Your capital can be withdrawn at any time as a lump sum (provided eligibility criteria are met). There is no guarantee that your account balance will last your lifetime.


a regular income stream paid in return for a lump sum investment, usually for the purposes of retirement income.

Assessable income:

income earned before allowable deductions.
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