SMSF audience guide
SMSF for retirees: pensions, drawdowns and tax-free earnings
In retirement, an SMSF gives you something an industry fund can't: full control of which assets fund your pension payments, when capital gains are realised, and how the Transfer Balance Cap is managed across both members. Earnings on assets supporting your pension are taxed at 0% — and you decide which assets those are.
New FY kickoff — 50% off SMSF setup (limited time)
Limited-time new financial year offer — 50% off Individual and Corporate Trustee setup fees. Ends midnight AEST, 30 September 2026.
How retirement phase works in an SMSF
When you meet a condition of release — typically retirement after age 60 — you can move balances from the 15%-taxed accumulation phase into a retirement-phase account-based pension where earnings are tax-free, up to the Transfer Balance Cap ($1.9M per member in 2026).
The SMSF must pay the age-based minimum drawdown each year (4% from age 65, rising with age). Beyond that minimum you decide the timing, the amount and which assets to sell — useful when you want to delay realising a capital gain or draw down cash holdings instead of equities.
- 0% tax on earnings supporting a retirement-phase pension (up to the Transfer Balance Cap)
- Choose which assets fund pension payments — control capital gains timing
- Coordinate pensions across both members of a couple
- Binding death benefit nominations + reversionary pensions for estate planning
- TBAR lodgements handled by easySMSF as standard
- Actuarial certificates included when proportional method applies
Frequently asked questions
Ready to set up your SMSF?
A simpler online process, specialist administration and broad investment choice.
General advice warning
Figures shown are illustrative only and based on the inputs and assumptions you provide. They are general information, not personal financial product advice. Consider your objectives, financial situation and needs, and seek personal advice from a licensed financial adviser before acting. easySMSF does not hold an Australian Financial Services Licence (AFSL).