Q: For the past 25 years I have been actively investing the money in my SMSF. But at 74 I no longer want to do this. Ideally, I want to roll over my super to an industry fund and close my SMSF.
The problem is, I’m trapped. The super funds I have approached so far will not accept me as a new member because I have a term allocated pension. It has a $1.8 million balance – just within my transfer balance cap. It has a term based on me reaching 100 years and is part of my $4.3 million total super balance. If I roll it over again and change the term to be based on my life expectancy I will still have to wait 13 years before I can close my SMSF and I am not sure I will still be capable of doing it, or even be here. Is there a way around this problem? Could I roll over my term pension to an allocated pension if I make sure that pension payments comply with the minimum and maximum limits for the term allocated pension? Graham.
