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Islamic Pension

While you’ve been working hard, your Meezan Super Simplifier Pension account has been too! Now that you’re ready to ease into retirement or retire fully, you can convert your Super Simplifier account into a Pension account. This means you can elect to draw a regular income from your Super savings, so you can work less (or not at all) and enjoy more.

There are two types of pensions available

With both types of pensions, you can choose the amount you receive between the minimum and maximum if any, and how often you receive these payments. Please discuss your options with our Financial Adviser.

Just like your Super account, your Pension account continues to be just as flexible, transparent, and invested in a Sharia Complaint manner.

An Account based Pension

An account-based pension is a retirement income stream which offers regular, flexible and tax-effective income from your superannuation.

You can get access to it when you reach ‘preservation age’ (between 55 and 60).

How an account-based pension works

Typically, you get to choose:

A Transition to retirement Pension

Make the most of your super as you make transition to retirement

The transition to retirement measure allows people who have reached their preservation age to have access to their superannuation benefits without having to retire or leave their job

A transition to retirement (TTR) strategy lets you access some of your super

  • while you’re still working and
  • when you’ve reached preservation age– the age when you can access your super.

 

You can start a TTR strategy by opening a TTR Income account alongside your regular super account. This way you could save more before you retire or you could wind back on work, while topping up your take-home pay.

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Income payments attract a 15% tax offset between preservation age and 59 and are tax-free* at age 60 or over

Frequency of payments

You can arrange for monthly, quarterly, half-yearly or annual payments. Payments continue until the account balance runs out or you take what’s left as a lump sum.

Benefits and features of a Retirement income account

  • Zero tax on your income payments if you’re over age 60*
  • Flexibility to set your payment amount and frequency*
  • Stop your payments and close your income account at any time*
  • Sharia Complaint investments managed by our investment experts
  • Zero tax on investment earnings
  • Make extra withdrawals at any time

How a TTR strategy works

1

Your employer and you continue adding money to your account.

2

Transfer some super to open a TTR income account. To keep your super account open leave it atleast $6,000 in it.

3

Draw up to 10% of your TTR income balance to top up your take home pay.

Super Account

one-off transfer of at least $25,000

TTR Income Account

Draw regular payments (up to 10%)

Your Bank Account

Islamic Pension

While you’ve been working hard, your Meezan Super Simplifier Pension account has been too! Now that you’re ready to ease into retirement or retire fully, you can convert your Super Simplifier account into a Pension account. This means you can elect to draw a regular income from your Super savings, so you can work less (or not at all) and enjoy more.