Allocated PensionAn allocated pension is a product purchased by retirees to convert their super savings into a regular income. Retirees use allocated pensions to pay themselves an income over a time period roughly equivalent to their life expectancy. Pension payments can be made monthly, quarterly, half yearly and yearly and are deposited directly into a retiree's bank account. Transition to Retirement PensionA transition to retirement pension is a flexible way to move from work to retirement. On reaching your preservation age (generally 55, but is increasing over time and may be 60 if you were born after 30 June 1964), you can start accessing super (including the preserved portion) via a super pension while maintaining or reducing work hours. Dividend imputationDividend imputation is a company tax term in which some or all of the tax paid by a company may be attributed to shareholders in the form of a tax credit to reduce income tax payable on the income distribution (dividend). Grossing upThe grossed up dividend measures the rate of return from dividend payments after taking into account the benefits of imputation credits (franking credits) to the shareholder. By CompareShares.com.au - for more articles like this click here. CompareShares.com.au is Australia's pre-eminent news and investing site for investors and traders, covering shares, superannuation, property, financial planning strategies and more.
19th-May-2009 | 