How to Initiate a Pension in Grow: Timelines, Fees, and Documentation Requirements
Overview of SMSF Pension Initiation
Initiating a pension within the Grow platform involves moving your superannuation into pension phase, allowing you to withdraw funds as a regular income stream. This article explains the process, timelines, fees, and documentation requirements you need to know.
Steps to Transition Your Super to Pension Phase
Submit a Signed Declaration: Submit the necessary declaration to transition your super into pension phase. This declaration begins the formal process.
Complete Additional Forms (If Required): If additional forms are needed after your declaration is submitted, Grow will contact you and provide the required documents for completion.
Application Review and Approval: Once your application and any required forms are processed, you’ll receive confirmation about the transition.
Timeline and Pension Withdrawal Details
You can begin withdrawing funds as a pension after your specified retirement date, when your account officially transitions to pension phase. For instance, withdrawals cannot commence until after this retirement date.
Grow will notify you of your minimum pension amount for the upcoming financial year once your retirement date has passed. Communication will come from an administrator or designated representative.
Fees for Starting a Pension
Starting a pension, such as a Transition to Retirement (TTR) income stream, incurs a $330 setup fee per pension. This fee must be paid from your SMSF Cash account, not personal funds.
If you initiate multiple pensions simultaneously, Grow may only charge one setup fee.
After submitting your pension application: - Grow will send you pension-related documents (typically via DocuSign) for review and signing. - You will also receive an invoice for the applicable setup fee.
Related Topics
Managing SMSF Cash Accounts
Transition to Retirement Strategies
Frequently Asked Questions about Pension Minimums