Q: We are in a fortunate situation. We have a self-managed super fund in accumulation mode and are self-directed investors. My balance is $1.2 million and my husband’s is $2 million. I’m about to turn 60 and have been retired for the last two years, meaning I will satisfy a condition of release, whereas my husband is 63 but still intends to work full-time so we have enough income for living expenses. I have a separate ESS Super account in accumulation mode with an $800,000 balance.

We are in a quandary not knowing the best way forward. Should I consolidate my accounts or switch all or some into pension mode? If I do switch to pension, there will be a reporting obligation – so what does our SMSF need to do to meet this requirement? I am aware the tax benefit in switching is limited to $1.9 million per member. Teresa.