Should I withdraw all of my pension and put it elsewhere for higher
returns?
Q.
I am a single 63 year old disability pensioner and I receive a
Centrelink pension and an allocated pension. I have only $91,000 in
the allocated pension fund and draw the minimum amount of $320 a
month. As the investment has been rapidly falling I switched to a
capital guaranteed option, but this only returns 3-4% p.a. Would I
be better off withdrawing the funds and putting them into a bank
term deposit where I can get 8%? My only other assets are $25,000
in the bank and my house which is fully owned.
A.
Your adviser will be able to do the sums for you, but on the
information provided, I doubt you will be up for much yearly tax,
if any, if you withdrew all the funds out of your allocated pension
account. You would also save the fees charged by that account and
be able to take advantage of the high rates currently offered
online by the major banks.
Each week financial advisor Noel Whittaker answers your
questions.
