If you are aged 60 years old and not yet ready to retire, you could access some of your super while you're still working by opening a Transition to Retirement (TTR) Income account.
What if I am not retired? If you are still working you can only access your Super via a Transition to Retirement Strategy (TTR). A TTR strategy allows you to access your Super by putting some of your Super into an account based pension.
You can access your super when you: reach your preservation age and retire. reach your preservation age and choose to begin a transition to retirement income stream while you are still working.
You can get your super when you retire and reach your 'preservation age' — between 55 and 60, depending on when you were born. There are special circumstances where you can access your super early.
If you are between 60 and 65 you are only required to cease an employment arrangement to meet the retirement condition of release. If you are between preservation age and age 60, in addition to ceasing employment, at that time you must not intend to return to work for over 10 hours per week.
Rule of 60 means the termination of Participant's employment for any reason other than Cause if the sum of Participant's age and completed years of service with the Firm equals at least 60 on the date of his or her termination of employment; provided that such Participant has completed at least 15 years of service with ...
This obviously depends on what annual income you want to fund but if you want to be able to afford a comfortable retirement—which is an income of just over $48,000 a year for a single according to the ASFA Retirement Standard—then you need a balance of at least $500,000.
The minimum amount that can be withdrawn is $1,000 and the maximum amount is $10,000. If your super balance is less than $1,000 you can withdraw up to your remaining balance after tax. You can only make one withdrawal in any 12-month period.
If your super provider allows it, you may be able to withdraw some or all of your super in a single payment. This payment is called a lump sum. You may be able to withdraw your super in several lump sums. However, if you ask your provider to make regular payments from your super it may be an income stream.
If you withdraw money from your super fund, you must tell Centrelink within 14 days.
Assume, for example, you will need 65 per cent of your pre-retirement income, so if you earn $50,000 now, you might need $32,500 in retirement.
Yes, you can return to work after retirement. It is possible that your intentions or circumstances have changed and you have decided that you would prefer to return to work, even if you have already accessed your superannuation or are receiving Age Pension payments.
For many retirees with modest post-retirement spending plans, balanced investment strategies and full Social Security benefits, $500,000 may last the entire length of retirement.
The average super balance for people aged 50 to 54 during 2015–16 was $135,290 the ASFA report found. For people aged 60 to 64 this figure increases to $214,897 and for 65-69-year-olds, it drops to $207,105 as people start drawing down their super.
The traditional age of retirement is 65, but it's possible to retire at age 60 with planning. Obstacles to early retirement include lack of access to Social Security benefits and Medicare. However, on the plus side 60-year-olds can withdraw from retirement accounts without penalty.
So looking at the table, you can see that a 60-year old male will need a lump sum of almost $500,000 to provide an annual income in retirement of $42,000 for 20 years. These calculations are based on a 20-year time frame because the approximate life expectancy for Australian males is 84 years and 88 for females.
Once you reach age 60 you can normally access your super tax free. If you choose, from preservation age you can roll your superannuation balance into a TransPension account with TWUSUPER – this is our Super Pension product. Members who have met a condition of release may have access to tax-free payments.
Whether the money in your super account is tax-free or taxable when you withdraw it generally depends on the type of contributions made and whether tax was paid on it. Non-concessional (after-tax) contributions – those made from income after you paid tax on it – are tax-free when withdrawn from your super account.