Accessing Your Superannuation in Retirement

Thursday, December 12, 2024

When Can You Crack Open Your Super Piggy Bank? Accessing your Superannuation for retirement is a great time of life but can arrive with some financial complexities that require reliable retirement planning assistance.

Generally, you can't touch your super until you reach your "preservation age" and retire. This magic number depends on when you were born:

Born before 1 July 1960? Your preservation age is 55.

Born after that? It gradually increases to 60 for those born after 1 July 1964.

But wait, there's more! Here are the main ways you can access your super:

Reach preservation age and retire: Once you hit your preservation age and hang up your work boots, you can access your super.

Turn 60 and cease employment: If you're 60 or older and leave a job (even if you start a new one), you can tap into your super.

Transition to retirement: From age 60, you can start a transition-to-retirement income stream (can access up to 10% a year), letting you reduce work hours and top up your income with super.

Turn 65: Happy 65th birthday! You can now access your super, whether you're still working or not.

Special circumstances: In some cases, you might be able to access your super early due to severe financial hardship, compassionate grounds, terminal illness, or permanent incapacity.

Why Consult with a Financial Planner?

Before you start planning how to spend all that super money, let's talk about why having a chat with a financial planner might be a good idea.

Specialists in retirement:  Some Financial planners specialise in this area. They know all the ins and outs of the system and can help you navigate the complex world of retirement planning.

Your situation is unique, and a financial planner can create a strategy that fits your specific needs and goals. A financial planner can help you avoid common pitfalls and make informed decisions.

Retirement is a big deal, and having an expert in your corner can help you feel more confident about your financial future. 

Maximise your super: They can help you make the most of your super, potentially boosting your retirement savings through smart investment choices and contribution strategies.

Tax benefits: A good planner can help you structure your retirement income in a tax-effective way, potentially saving you money.

Estate planning:  Ensuring your money goes to your elected beneficiaries and that the tax burden on your estate is minimised is a vital part of your financial plan.

Ongoing support: As your life changes, so might your financial needs. A planner can provide ongoing advice to keep you on track.

In a nutshell, accessing your super is a big deal, and timing is everything. Maher Digby Securities, a financial planning firm on the Sunshine Coast, specialise in retirement planning and can provide comprehensive assistance with various aspects of effective retirement planning

For more Information contact Mark Digby at Maher Digby Securities Pty Ltd - Financial Advisers – AFSL No. 230559. This document was prepared without taking into account any person’s particular objectives, financial situation or needs. It is not guaranteed as accurate or complete and should not be relied upon as such.  Maher Digby Securities does not accept any responsibility for the opinions, comments, forward looking statements, and analysis contained in this document, all of which are intended to be of a general nature. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend consulting a financial advisor.

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