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Meg Heffron

When a reversionary pension is a bad idea

Where you both have high super balances, having the option to pay the deceased’s super to their estate instead can lower tax bills in the future.

When couples set up superannuation pensions – particularly in self-managed super funds – they often make them “reversionary”. In other words, they structure their super so that if either dies, the pension continues on seamlessly to the other partner.

While there are plenty of good reasons to do this, sometimes a reversionary pension isn’t a great idea.

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Meg Heffron is managing director at SMSF specialist firm Heffron.

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    Original URL: https://www.afr.com/wealth/personal-finance/when-a-reversionary-pension-is-a-bad-idea-20220406-p5abcu