Mar 18, 2024
Episode 9 – Super Death Benefits Tax can Cost Your Dependents Thousands of $$'s
In Ep 9 we focus on the largely unknown Super Death Benefits Tax.
When clients enter retirement and start drawing a pension, they can easily think that the era of taxes are largely behind them as their pension income, earnings and capital gains are tax-free. However, this is not necessarily the case as their dependent adult children will incur Super Death Benefits Tax on the Taxable component of their super and pension accounts. This may not seem like an important consideration, but if you have accumulated a large part of your retirement savings from employer contributions, salary sacrifice or other tax-deductible contributions then this Taxable component can be sizeable and result in significant taxes for the next generation.
This episode explains what Super Death Benefits Tax is, how it works and the ways in which you can eliminate it for your adult children.
I hope you enjoy this discussion, and I hope there's something there that's useful for you and your family.
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This podcast is brought to you by financial planning firm Manly Financial Services.