Are you maximising your PSS Pension? When you take a PSS Benefit, is a full pension right for you?

Financial Planner Luke Smith joined 2CC Talking Canberra 1206AM in Money Matters, which aired live on Friday 19 July 2024. This week’s show looks at the PSS. As many Public Sector Super Scheme (PSS) members are approaching retirement, Luke is finding that there are some definite knowledge gaps when he speaks with members about their own retirement plans. This episode aims to provide some general financial information about the fund to help PSS members move forward more confidently. Thank you for joining us live on 2CC or your favourite podcast streaming service with ‘The Strategy Stacker - Luke Talks Money’.
Key topics covered include:
What is the PSS defined benefit scheme?
The retirement options for PSS members are: taking it as a lump sum, as a full pension or taking it as a part pension.
Unlike other superannuation funds, PSS allows members to retire at age 55 and take a pension option, or part pension and part lump sum.
If you take a part pension, and you’re under your commonwealth preservation age, it must be rolled to a complying superannuation fund.
The rules state if you take a pension, you must take at least 50% of your income stream. This means you can choose 50% (or greater) as a pension and the rest as a lump sum if you need money to spend on a new car, holiday or pay out the mortgage on your house.
Choose the option that delivers the best outcome for your lifestyle goals.
How can you maximise your benefits for your retirement?
Remember you can also make tax deductible contributions to a superfund outside of the PSS, given your concessional contribution cap.
When approaching retirement planning, it’s important to consider your PSS Super and other super funds and assets (including investment property, shares and cash in the bank), not just your PSS fund.
Should I make a contribution of 10% to my PSS fund?
Should I use up my leave?
When should I exit the fund?
Luke shares his top tips around taking benefits from a PSS in retirement. Seek advice if you need help.
Are you a PSS member thinking about your own retirement plans?
Luke as a Financial Planner can help you set up a financial planning strategy to help you achieve your personal financial goals, including investment, super and retirement. Luke is also experienced in helping PSS members make retirement plans. Simply make an appointment to confidentially discuss your goals. Call Envision Financial Services on 6260 4749. You can use the contact us form to make an appointment, for a confidential discussion about your situation.
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[@sonyasj74]

Thank you Luke. There is so much information out there on superannuation, but it's all about accumulation super funds. It's difficult to find information or to ask questions about defined benefit schemes / PSS. Contacting PSS or using their I-estimater isn't always helpful. Your information is simple, direct, easy to understand and invaluable. Keep up the great work. 👍⭐

[@thestrategystacker]

@@sonyasj74 thanks. We have a number of shows about PSS on our channel or website under resources.