What is the different between a superannuation fund and a pension fund?
Top answer provided by:
Damian Cullen
Both Super funds and Pension funds are part of the superannuation system. In simple terms, a super fund is what you make contributions to while you are saving for retirement, while a pension fund is a fund that pays you an income when you are retired. You are only allowed to make contributions to a super fund. Pension funds cannot receive additional funds once they are set up. Usually when a person gets to retirement age, they will ‘roll over’ their super fund into a pension fund.
In some circumstances, where people are around retirement age, it can be appropriate for one person to have both a super fund and a pension fund at the same time. Both super and pension funds receive attractive taxation arrangements. In most circumstances, pension funds to not pay any tax at all, while super funds normally pay a 15% tax rate. This is usually a much lower tax rate than most individuals pay.
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Comments8
"Is it hard to transfer from a super fund to a pension fund? Are there any fees to pay when you do this?"
Susan Hall 14:51 on 17 Oct 22
"I am 73 and retired. Can I downsize and put money into my pension fund? Or is it only if I have a super fund?"
Lynette Worboys 13:45 on 29 Mar 22
"How do I get my superannuation I retire next year but not heard about my superannuation that I paid in years ago"
Dina 06:31 on 21 Dec 21
"Hi. I worked for the government of Tokelau for years BACK and was a member of the New Zealand government superannuation scheme which I believe we automatically entered. Does this adds up to my current superannuation scheme since working in New Zealand. If so, how can I be sure of this. Thanks."
Kirifi Kirifi 13:25 on 07 Apr 21
"Hi, I worked in the jute mills in the sixties and we paid superannuation,what happened to that money?"
Hugh samson 22:37 on 15 Mar 21
"Dose the company I work for add to my superannuation/pension contributions?"
Ann kelly 07:52 on 08 Oct 20
"I am getting a voluntary redundancy payment AndI would like to know if putting in a pension fund or putting it in a pension fund is best for tax purposes. I don't plan to fully retire after I am made redundant "
Maree Willis 07:58 on 12 Feb 20
"So if I were splitting from my partner and she is keeping the house while I am getting a chunk of her superannuation, at 58 am I better off putting it into a pension fund rather into my superannuation as far as tax goes? "
Brett 01:50 on 05 Dec 18