When you retire you could withdraw your super as a cash payment from your super account. You can open an account-based pension and set-up regular income payments. You can also withdraw smaller cash payments from your super account or account-based pension. The choice is yours.
Depending on your fund's rules, you may be able to withdraw some or all of your superannuation (super) as a lump sum. If so, you can take all your super in one go, or as several lump sum payments. Ways of using a lump sum include: clearing debt (for example, paying off your mortgage)
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 typically pay 15% tax on your super contributions, and your withdrawals are tax-free if you're 60 or older. The investment earnings on your super are also only taxed at 15%.
As mentioned earlier, super payments are generally tax free once you turn 60. Learn more about accessing your super by reaching age 60 and ceasing employment.
You can access your super as long as you've permanently retired. If you end an employment arrangement on or after age 60, you can also access the super you've earned up until then. If you're not ready to retire, you could use some of your super while you're still working, with a Transition to Retirement Income account.
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.
If you withdraw money from your super fund, you must tell Centrelink within 14 days.
The minimum amount that can be withdrawn is $1,000 and the maximum amount is $10,000.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.
Superannuation is counted as an asset for Age Pension purposes and will count towards the Assets Test limits. Superannuation will be added together with all of your other assessable assets and measured against the limits.
Can I Transfer My Super to My Bank Account? 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.
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.
The Bottom Line. For some, a lump-sum pension payment makes sense. For others, having less to upfront capital is better. In either case, pension payments should be used responsibility with the mindset of having these resources support you throughout your retirement.
There is no maximum annual drawdown other than the balance of your account, unless it is a Transition-to-Retirement (TTR) Pension that is not in retirement phase, in which case the maximum amount is 10% of your pension account balance.
In addition, funds within your superannuation are protected from creditors. If you withdraw it, you lose this protection. Accessing your superannuation early can also mean paying higher rates of tax, plus fees from your superfund provider.
Lump sum. You may withdraw a lump sum from super at retirement of any amount up to your total balance. A lump sum payment can be useful if you need to repay debts, or you have some large expenses such as making home renovations or purchasing a vehicle.
If you're 60 and over, the income will generally be tax-free. If you're between your preservation age and 59, the components of your super will dictate how it will be taxed.
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.
The ASFA Retirement Standard Explainer says a comfortable retirement lifestyle would need $640,000 in super for a couple, or $545,000 for a single person.
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.