Common questions about Super
When can you withdraw money from your Super?
You can withdraw money from your superannuation when you reach preservation age, which is anywhere between 55-60, depending on when you were born. A key point to note is that the preservation age in increasing to 60 by 2024.
Once you have reached the preservation age and meet a retirement condition of release, you have a couple of options to choose from. You have the option of receiving your super as a lump sum, an account-based pension or a combination of both. It is also important to note that you can access your superannuation money after turning 65.
If you reach the preservation age and haven’t yet retired, you are able to draw down on your super in the for of a transition to retirement stream. While this can provide you with additional income payment, you typically aren’t able to make any lump sum withdrawals.
Can I still contribute to my super when I am over 65?
For those who decide to continue working after reaching the age of 65, there is some good news. Even after turning 65 your employer is typically required to continue making compulsory contributions to super. However, if you are looking to make additional voluntary contributions after the age of 65 you will generally need to meet a work test. This requires you to be ‘gainfully employed’ (including self-employment) for at least 40 hours over a consecutive 30-day period during in the financial year. If you do this then you can voluntary contribute to your super at any time in the financial year until age 75.
Now the latest development in this space is the ability to make contributions after the age of 65 without regard to the work test and without regard to any age limitations – and this is through what is called the downsizer provisions.
These new rules started from July 1, 2018. They allow individuals and couples who have owned a property from more than 10 years, and then sold, to contribute up to $300,000 each from the proceeds of that sale into superannuation as a non-concessional contribution and this may assist you with improving their income in retirement and assist in improving your estate planning situation.
The Money Edge | Bundaberg