Pension versus lump sum

By George Cochrane
Updated May 7 2014 - 12:19pm, first published April 20 2014 - 3:00am
Plans: Experience is required to run a self-managed super fund.
Plans: Experience is required to run a self-managed super fund.

I am to be made redundant in mid-2014. I will be 61 next month and plan to retire. My wife will stop working in July when she turns 55. She has about $150,000 in Australian Super plus $200,000 in the bank. I have a defined benefits superannuation plan with PLUM, a retail fund, offering a lump sum of $750,000 or a life pension of about $68,400 a year which is not indexed and reduces to 50 per cent for my wife should I pass away. I have an additional superannuation account with $217,000 with PLUM but am only permitted to move the additional account if I close my defined benefits account. I have about $200,000 in two bank accounts plus $90,000 in shares. My intentions are to deposit my redundancy payout of $300,000, including accrued leave, along with my additional super into either a self-managed fund or an industry fund for a total of about $500,000 at the start.

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