What I can do with super in retirement
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- เผยแพร่เมื่อ 3 ต.ค. 2023
- What can I do with my superannuation savings once I retire? What are my options?
So first let’s start with the preliminary question: When can I access my super?
The general rules to access super are as follows:
Turning age of 65, even if you continue working
Reaching preservation age and retiring
Reaching preservation age and commencing a Transition to Retirement if you continue working.
What can I do with my super in retirement?
Commence retirement income stream - I am a strong believer that one income stream is not the best way to set up your retirement. That obviously depends on the overall value of your investable assets, and whether Age Pension is even a consideration in your situation. If it is, the correct design of your income and split between different income streams can provide quite a substantial difference in the level of income and security of it every single year for the remainder of your retirement.
Withdraw a lump sum - once you meet conditions of release, your super is your money, and you can withdraw any part of it in a form of a lump sum. It can be a partial or a full withdrawal. Generally, I do not recommend withdrawal from the super, just to have money in a bank account. After all, once your super savings have been moved to a pension phase, they are not subject to any tax, no income tax, no capital gains tax. If instead, you invest funds directly on your name, all the profit and interest are subject to your personal income tax.
But sometimes there are reasons to make a partial withdrawal such as:
Paying off the mortgage
Home upgrades
Retirement preparation, such as a new car to have a reliable vehicle for the rest of your retirement, or a holiday
Keep savings in super - sometimes people think that on retirement they must move their super to an income stream. No, you do not, you can keep all or part of your savings in super. I am not sure what would be a reason, apart from having in superannuation more than the transfer cap, which is currently $1.9mil. This is the maximum you can currently move to a retirement pension. Therefore, if you super balance is greater than $1.9mil, the rest would need to remain in the superannuation account, and unfortunately be subject to 15% tax, unlike the rest in the pension account. If this is your situation, I am certain you realise the value of a good professional advice for your retirement.
Combine the above options in any proportion that suit you - again I repeat, there is no rule that says you have to start an income stream, just because you retired, but remember that a good, solid and reliable retirement planning takes into consideration all possible aspects of what could happen in the future, together with unforeseen circumstances.
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As usual, another excellent vid, Katherine... SO, KEEP THEM COMING!🤩
It seems like that it is asaumed everyone here has plenty of money saved in their super and tries to save on taxes. What if you're a low income earner, are 55 years of age and barely have a bit ober 150K in your superfund?? Can we basically assume I won't even have enough money to pay my Strata fees and die of hunger??
It's all so complicated and grows over my head...Heeeeelp!!!
for the super amount in excess of 1.9m, could this be used to buy a tax free annuity?
My experience with Super Funds is haveing large portions wiped out in stock market crashes plus their fees on top. This has happened twice therefore I have no confidence in them and only get a 1% return on the Super fund cash rate. On retirement If I withdraw all and place in a short term investment account 5% how will the interest be assessed e.g. Income must be under the assessable fortnightly rate allowed for pension? Is it asessed annually> Thank you.
Katherine,. Are the Superannuation nation minimum drawdown rates only applicable to the income stream component of your super fund? Of one does not require income at the imposed drawdown rate can on leave a proportion of funds in an accumulation account? Thanks
Hi Paul, yes, this is correct. The drawdowns only apply to income streams, not super. You can keep however much you wish in a super and not draw any money form it for as long as you wish.
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And if you do have some money but don't have a family trust which you can get the full pension, but put it in investment, you become a monster by the Australian government . They destroyed your confidence when they decided to reduce your pension, leaving you with just above the pension. But at the same time, they give millions of dollars to aborigines who have used it for themselves.
😮 won't get the full pension if you invest, and if you have a family trust fund, you will get the full pension . This is how the Australian government cheats and lies to those who are honest about their money. What the Australian government does is take away a quarter of your pension . They like to use agents called ASSETS LEGISLATION to get as much money from those who invest money but allow trust funds holders to get away with their full pension. This is what you call a double standard in a DEMOCRATIC COUNTRY.
Please go straight to the point instead of mucking around,thank you 😂
So, you think TH-camr needs to make vid as quick as possible, don't you? I don't think youtubers do it for fun. Think about it, it's not difficult