Withdrawing Super on Retirement

Withdrawing Super on Retirement

When you retire, your superannuation becomes a key resource to support your lifestyle. There are several ways to access your super, depending on your financial needs and personal circumstances. Here’s an overview of your options and the rules around withdrawing super at retirement.

When Can You Access Your Super?



You can withdraw your super when you meet a condition of release, such as:

• Reaching Preservation Age and Retiring: Your preservation age depends on your birth year and ranges from 55 to 60.
• Turning 65: Regardless of whether you’re still working, you can access your super once you reach 65.

Ways to Access Your Super

1. Lump Sum Withdrawal

• You can withdraw all or part of your super as a lump sum. This option provides flexibility for large expenses, such as paying off a mortgage or traveling. Keep in mind, withdrawing a large amount may deplete your retirement savings.

2. Account-Based Pension

• Convert your super into an account-based pension. This option provides regular payments, similar to a salary, allowing you to spread your super savings over your retirement years. You can choose the frequency and amount (within minimum limits set by the government).

3. Annuity

• Purchase an annuity with your super. This provides guaranteed income for a set period or for life, offering stability and peace of mind.

Tax Implications

• If you are 60 or older, withdrawals are usually tax-free.
• If you are under 60, some withdrawals may be taxed, depending on the components of your super (tax-free, taxable, or untaxed).

Planning Your Withdrawals

Withdrawing super is a significant decision that impacts your financial future. Here are some tips:

• Consider Longevity: Your super may need to last for several decades. Plan your withdrawals to ensure long-term financial stability.
• Seek Professional Advice: Speak to a financial adviser to structure your withdrawals in a way that meets your needs while minimising tax and maximising Centrelink benefits.
• Review Your Budget: Align your withdrawals with your retirement goals and ongoing expenses.

Superannuation is a valuable tool to fund your retirement. By understanding your options and planning carefully, you can make the most of your hard-earned savings and enjoy a comfortable retirement.