Your super account will remain active, even if you are no longer working. Your super money will continue to be invested in whatever risk options you've already locked in with your provider. You will likely still be charged some fees and possibly insurance premiums too.
Unless you do something about it, your super will probably stay in its current account/s. You can choose to leave it where it is, but you might want to consider your other options also.
You can apply for early release of your super if you are unemployed and eligible to receive a JobSeeker payment, Youth Allowance for job seekers, parenting payment (including the single and partnered payments), special benefit or farm household allowance.
Anyone under 65 can contribute to super. It does not matter if you are employed, self-employed, not working or retired. Your spouse and/or employer can also make contributions on your behalf.
What happens after I access it? When withdrawing your superannuation, you can generally choose to receive it as a lump sum, a retirement income stream, or a mixture of both. If you choose a lump sum, the entirety of your superannuation balance is transferred to your bank account.
Having superannuation savings does not deny you from receiving Age Pension payments. Eligibility for the Age Pension is based on an Assets Test and an Income Test.
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.
Taking money out of superannuation doesn't affect payments from us. But what you do with the money may. For instance we'll count it in your income and assets tests if you either: use it to buy an income stream.
You can withdraw your super: when you turn 65 (even if you haven't retired) when you reach preservation age and retire, or. under the transition to retirement rules, while continuing to work.
You can only transfer your super to your bank account if you are eligible to access your super. To be eligible to access your super, you generally need to have at least met your superannuation preservation age.
In most cases, there won't be any change in your super if you're unemployed. The only change will be not receiving any contributions from your employer to help accumulate a higher balance. Moreover, your salary continuance cover, if you have it, will no longer be valid.
It's all about your age. If you were born before 1 July 1960 you can get access to your super when you turn 55. If you were born later the age varies between 55 and 60. People aged 65 or over can access super and work as well.
There are no rules about what you can spend your super on if you choose to take it as a lump sum.
Once savings are withdrawn from super, it is up to you how the savings are used. You can use the withdrawal amount to pay off debt, start a business, buy a car for personal use or even buy a house to live in.
You normally can't get your super until you reach your preservation age and retire. Preservation age is usually between 55 and 60, depending on your birth year. You can read about when you can withdraw and use your super on the Australian Taxation Office (ATO) website.
You can apply for one payment of up to $10,000 gross in a 12-month period if: you haven't received a financial hardship payment from any superannuation fund within the last 12 months.
We count your superannuation both: in the assets test - the value is the balance on your latest statement. in the income test under the deeming rules.
According to the Association of Superannuation Funds of Australia's Retirement Standard, to have a 'comfortable' retirement, single people will need $545,000 in retirement savings, and couples will need $640,000.
If you're aged 60 or over and withdraw a lump sum: You don't pay any tax when you withdraw from a taxed super fund.
Use your super to help buy your first home
The First Home Super Saver scheme allows you to make voluntary contributions to your super to help save a deposit for your first home. You can withdraw this amount, plus investment earnings when you are ready to buy a home.
You can withdraw your superannuation at 55 if you have reached your superannuation preservation age. You will have limited access to your savings if you are still working, but may have full access to your super in the form of an income stream or lump sum if you have permanently retired.
For example, if you are a single homeowner you can get a full pension with an asset limit of $270,500. As a couple with a home and combined assets your limit is reached at $405,000 to receive a full pension.
Assets test
For a couple to qualify for the full Age Pension, your combined assets must be below $419,000 if you own your own home, or $643,500 if you don't own your own home.
Pre-planning helps
ASFA estimates people who want a comfortable retirement need $640,000 for a couple, and $545,000 for a single person when they leave work, assuming they also receive a partial age pension from the federal government. For people who are happy to have a modest lifestyle, this figure is $70,000.
A Lump Sum Gives You More Control of Your Assets
By accepting a lump sum from the pension, you gain the control over your income assets. Even if the income generated from the lump sum is less than the promised annuity payment from the pension, you gain control over the assets.