Why start a second pension account?
If Cap not reached easier tojust deposit up to Cap in the one pension account?
Well I am not qualified or licenced to give financial advice so the following is definitely
not financial advice and people should seek out professional advice to suit their own circumstances.
What I can say (and trying to keep this explanation as simple as possible) is that
in my own situation, money has gone into our smsf from various sources and at various times (both before and after starting an initial pension). Superannuation money has various components such as a "tax-free" component and a "taxable" component. My initial pension account has a taxable component of 85%. As I'm over 60 I don't pay tax on it as it is tax exempt in my hands but if it goes to non-dependant children when I pass away, the taxable portion will be subject to tax when they receive the $ after my death.
Subsequently, I added extra $ from after-tax money (non-concessional contribution) which then has a
100% tax free component. It makes sense for me to draw down the initial pension at a faster rate than the second one (which has no taxable component); not because I pay less tax but because it will make a very significant difference when my kids get the money. Therefore, I am drawing the second pension at the minimum rate and living mostly off the initial pension. Of course, it would also make a difference if I was under 60.
Furthermore, it is my understanding that to have one pension account, I would have needed to commute my initial pension, combine the funds, and then start a new pension (although I may not be entirely correct on the rules on this).
Either way, it may not make sense to combine, and possibly contaminate, various parcels of money from different sources with differing taxable and tax-free components.
This is a complicated area and I would urge people to seek their own professional, independant advice before making any decisions.