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. You may pay tax if you withdraw from an untaxed super fund, such as a public sector fund.
Once you reach age 60 you can normally access your super tax free.
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 Non-concessional (after-tax) contributions – those made from income after you paid tax on it – are tax-free when withdrawn from your super account.
You may be able to take your superannuation as a lump sum payment when you retire. This is usually tax-free from age 60.
Tax on Super Withdrawals Over 60
In most cases, you will be able to withdraw your super tax free as either a lump sum, or income stream if you are over 60 – whether your super is in accumulation phase or pension phase.
You can access your super, without restrictions, even if you're still working. Rules for accessing your super: 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.
Withdrawing Over Age 65
If you are over age 65, there is no restriction on how much super you can access, even if you are still working. Reaching age 65 is classified as a full superannuation condition of release, meaning you have full access to your super, which can be withdrawn as a lump sum or income stream.
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 restrictions on the amount you can withdraw each financial year. For example, if you are under 65 years old, you can access between 4–10% of the balance of money in your super account each financial year.
The minimum amount that can be withdrawn is $1,000 and the maximum amount is $10,000.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.
Can I Get the Pension if I Have Super? 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.
From 1 July 2017, if your total super balance is below the general transfer balance cap ($1.6 million from 2017–18 to 2020–21; $1.7 million from 2021–22) at 30 June of the previous financial year, you will be eligible for the annual non-concessional contributions cap ($100,000 from 2017–18 to 2020–21; $110,000 from ...
How much super you'll need in retirement depends on the lifestyle you want. According to the government's MoneySmart website, if you own your home, the rule of thumb is that you'll need two-thirds (67%) of your current income each year to maintain the same standard of living.
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.
Super is a great way to save money for your retirement. It is generally taxed at a lower rate than your regular income. You typically pay 15% tax on your super contributions, and your withdrawals are tax-free if you're 60 or older.
Can I access super at 65 and keep working? Yes. You can access your super when you turn 65 regardless of whether you're still working. You can also make certain types of super contributions up until you turn 75, even if you're retired and drawing a super pension.
Once you reach age 65, you can access your Super Benefit at any time whether you have retired or not. There are absolutely no restrictions to accessing your Super Benefit when over 65. Your Super Benefit can be accessed as either a Pension or Lump Sum withdrawal.
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.
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.
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.
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.
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.
Although not announced as part of this year's Federal Budget, it's important for employers to note that the superannuation guarantee (SG) rate will increase from the current 10.5% to 11% on 1 July 2023. Employers will need to remember to update your payroll system to comply with this increase.