Hey everyone, thanks for watching! Ready to take control of your retirement? Download our FREE 6-Step Superannuation Check today: www.superguy.com.au/super-tips/
I've reached 65 and even after talking to my accounted I was still unsure as to what to do with my super . You explained the different options very clearly . Thanking you muchly .
My mother retired 30 years ago on a defined benefit scheme and she receives an indexed pension. Her friends who retired about the same time where she worked all took lump sums or the normal superannuation accumulation. They are all now on the aged pension and need help from family whereas my mum can help her family. Unfortunately defined benefit schemes dont really exist anymore for people starting work so be careful with your money 😊
The only important thing missed, to my mind, is "preservation age" for me is age 57, but there are some severe issues if I try to withdraw super at that age. Everything that I withdraw is considered income and I will be taxed on it - meaning I would lose a considerable amount of it. So the important point is waiting until the "real age" (not sure the correct term but is age 60) not just "preservation age"
Yes, there are tax considerations on withdrawing super under age 60, but not always. There are ways to receive it tax-free under 60, plus tax offsets that apply to income streams.
My wife and I have been learning as we go. For example I believe you can’t normally add to your pension account but an exception is a “downsizer” payment when you sell your house and move into a retirement complex. There is however a really complex process to make it happen. One we are in the midst of at the moment
Thanks, I am 65 Thinking of Retiring But need to find something to do before retiring. You gave a good explanation. I liked that no tax bit for Retirement account. The thing is have to take at least the defined percentage out.
If you plan to work part time or have other income you can have two super account, one for retirement income with zero tax and the other still in accumulation so you can still use to reduce tax from other income
Correct, contributions cannot be made to a retirement income account. So, if you intend on continuing to make or receive contributions after accessing your super, having an accumulation account and pension account is a structure that would work.
What if i decide to retire and transfer my super from my accumulation fund to retirement funds and withdraw the amount regularly as per the defined norm e.g. 4% or so, but i continue to earn business income from our Pty Ltd company. You will agree some businesses don't need full-time activity. Is it allowed by the law?
Hope you have plenty of savings or other investment income. My parents missed out on super (none in their generation), downsized and invest the balance in "mum and dad" shares. It produce quite decent dividends, enough to live on without pension.
Thank you, my parents sold their family farm and put the entire amount back into their super and moved into a retirement village with aged care facilities. Is the limit still 300K for housing sales before the government can start asking for money 💰
Good video. One question when you transfer from a accumulation account to a pension account can you still withdraw lump sums from the pension account anytime you want to?
Yes, you can even leave specific assets in accumulation like negative geared real estate. Just transfer the property to pension before you sell, avoids capital gains
Your videos are very helpful and appreciated. What happens if you have both defined benefit and accumulation? I’ve been with an employer for the last 3 years and have defined benefit from them but most of my super is accumulation.
There is no requirement to transfer all of your accumulation balance to a pension account. You can transfer as much or as little as you like and you can make partial lump sum withdrawals at your discretion, provided you have met the full superannuation condition of release requirements.
I must have missed something. Assuming you were happy to draw the minimum amount as a pension why wouldn’t you transfer the whole accumulation amount over if they can both be invested the same and the pension account pays no tax?
You have not missed anything. There are dozens of simple super rules that can result in large tax savings once you understand how they're applied. For this rule specifically, you first need to be eligible to start a pension. You also need to be mindful of any insurances you have in place, or contributions you wish to claim a tax deduction for, before commencing a pension.
@SuperGuyAu Hi Super Guy, thanks for your very clear and thought-provoking content. I like the concept of switching to pension mode and saving 15% on tax. If I keep a small part of my super as an accumulator account, can I still salary sacrifice into the accumulator account, and can I still pay post tax into the accumulator fund?
Generally, the assessment of your super balance will be the same whether it is inside super or has been withdrawn and is outside super, if you are over Age Pension age. However, I would suggest seeking personal financial advice prior to making any lump sum withdrawals from super.
Love the video: short and to the point. Can you please confirm that any withdrawals whether from the accumulation account or the pension account are both taxed at the person's marginal tax rate?
Glad to hear you liked it! Tax on super withdrawals will depend on your age, the tax components, and the type of withdrawal (lump sum or pension). Read more here superguy.com.au/superannuation/tax-on-super-withdrawals/
Agree with this, except 1 and 2 are the wrong way around in my opinion. A personal diversified share portfolio trumps managed trumps managed funds hands down. To many fees to much "cream off the top" taken out of a managed fund, paying for high salaries,not enough transparency. I have had both, so i know from experience.
Well explained Can I please ask some questions; can you move funds from a Pension account back to an Accumulation account. If yes are they deemed a personal contribution subject to the contribution caps? Can you vary the amount of the pension amount or once you set, say 5%, if the balance that is fixed? If it is fixed could you transfer funds to a 2nd pension account and would that be subject to the minimum pension amounts (%) Any info appreciated Cheers
Thanks. Yes, pension balances can be moved directly back to an accumulation account without it counting towards any contribution caps. Pension payments amounts are not fixed and can be altered at any time.
Thank you mate, very good information. I am 57 and my wife is 52 both working. Am I eligible to get government pension after my retairment at 67? my wife should stop working? And also what is the maximum amount we can keep in pension account to get government pension. Thank you
Each of these work a little differently and have various rules. Most will allow you to take a lump sum, begin an income stream, or a combination of the two. Plus, tax will be deducted from the untaxed portion when the withdrawal occurs or pension commences. You will need to speak with your specific govt fund about how tax will apply on withdrawals and pension commencements.
Hi, thank you for the video, it was easy to follow. I am 64 and cannot retire untill i am 67. What happens if i continue working past my retirement age (part time or casual), can i have my super in the pension phase along side working? When does the pension phase need to be set up? Do I have to go to a financial advicer/planner to get this set up, and if so how much will this cost? Thank you for your help.
You should see a financial advisor, the benefits will outweigh the cost. My understanding of the rules in AUS are that you can "retire" any time after 60. You need to provide evidence to your super fund that you have retired from work. At that stage all of your accumulation account can be moved to the tax free pension phase as mentioned in the video. You can earn part time/casual income after you "retire" buth there may be some restrictions. Talk to a financial advisor.
Thanks for a great video happy to subscribe. I understand the differences between drawing income from Super in the different phases and the tax benefits but I wanted to ask about the fund itself. When in pension phase does the super fund become tax free also?. For example does any dividends from shares or income from bank accounts no longer attract the 15% tax thankyou.
Yes, all earnings derived from assets in retirement phase of superannuation (but not transition to retirement phase) are received tax free. This includes interest, dividends, capital gains, etc. Read more here superguy.com.au/superannuation/tax-on-super-earnings/
Thanks for the great video. Can I ask you a question? I believe there is a cap of about 2 million on how much I can transfer to begin a pension. If I have more than that, what do I do, what can I do, with the excess. For instance, if I had 3 million, then I think I can only transfer about 2 million to the pension phase, what do I do with the 1 million? Can that be left in the accumulation phase, or doe sit have to be withdrawn as a lump sum? Thanks kindly.
You are only able to withdraw your money from super for personal use if you are eligible (usually retirement). Read more here www.superguy.com.au/superannuation/when-can-i-access-my-super/. As far as investment choice goes, you can always choose how your super is invested.
Hi there. Great video. Thank you. It caused me to think about my own circumstances and tax. I’m 65 and have a transition pension account from which i take the minimum each year. I also still work part time and have a super accumulation account. Thanks to you I now know that profits on that account are still taxed yet profits on the earnings of my transition account are not. Should/can I periodically transfer the balance of my accumulation account to my transition account?
Once you attain age 65, your transition pension account should convert to an ordinary account-based pension which provides tax-free earnings and no upper-limit on the income that you can drawdown. Double check with your super fund that your transition pension has converted into an account based pension, or ask them what needs to be done to do so. Yes, generally, accumulation funds can be transferred into a pension account periodically - this will increase your minimum pension amount in dollar terms.
Thanks, very informative about the differences. On the assumption that l don’t need additional pension income in retirement, what do u think is a better strategy- leave the lump sum in accumulation fund or convert the lump sum into a retirement pension income with the tax advantage?
The better strategy will depend on your situation. Leaving in accumulation phase means you aren't required to make withdrawals, but tax is up to 15% on earnings. Whereas, retirement pension accounts receive tax-free earnings, but a minimum pension must be taken. Keep in mind, if you are eligible to make contributions to an accumulation account, this could be an option, which may also have several tax benefits. I would suggest obtaining personal advice in relation to your situation. We offer this through Toro Wealth www.torowealth.com.au/
@@geoffdawes2297 If in receipt of Age Pension payments, converting your super accumulation into pension phase will not change your Age Pension entitlements, because super accumulation accounts and super pension accounts are assessed identically once you have reached Age Pension age.
Very helpful, thankyou. Im 62 and looking to retire in the next year. Can I convert my super to a pension fund and then take large lump sums tax free to pay out my mortgage?
Withdrawals from super when age 60 or over are generally tax free. Read more here www.superguy.com.au/superannuation/how-much-can-i-withdraw-from-super-tax-free/
If you have an ordinary account-based pension, there is no upper-limit on what you can withdraw. If you have a transition to retirement (TTR) pension, you are limited to 10% per financial year.
Thank for you video, I got a question though, let say I got 2 millions dollars of super, I transferred all into TTR account, I'm 60 and retired. The minimum withdraw is 4% but I can withdraw a lot more right? At the moment I'm making 140 000 dollars just on interest can I withdraw this each year or I can only do 4%? Thanks :)
Hi Chris, superb UA-cam, thank you. I plan to retire when I'll turn 67 in Apr 2025, where I'll be eligible to a gov age pension. I have a decent supper balance too, but don't want to draw down it massively as our living is very modest and our mortgage was fully paid off. My wife is 4 years younger, so she won't get a pension until I'm 72 and she is a stay at home wife. My super fund calculator shows that we'll get around $17k pa as gov age pension and the balace to come from my super fund to receive a target total retirement income of $30k. Is that right? Do I have to pay tax if I draw down the gap from cumulative fund? If so, alternatively can I transfer a portion of my super balance to a pension fund to draw down, so I pay $0 tax?
Sounds like you've got a plan! Withdrawals from super are tax free from age 60, but the benefit of converting to an income stream is that earnings within the account become tax free compared to being taxed at up to 15% in accumulation phase.
@@SuperGuyAuthanks Chris. Am I allowed to transfer only a portion of my super balance to a pension a/c? If so, does the minimum % of annual income stream will be calculated on the balance of pension account?
Can you please explain why it is so difficult to get a UK super that is held in a SIP offshore into Australia. Why do you have to pay tax on your Super.
Thanks for your video. Please tell me, if I have both super investments and other investments from inheritance money then which should I draw down first in retirement.
You're welcome! There are several factors to consider prior to answering that question, such as your retirement objectives, your comfort with investment risk, tax on earnings and potential CGT, to name a few. See how personal advice could help answer your question by clicking here superguy.com.au/advice-process-video
Thanks for the great information. One thing I’m unclear on, though - if I transfer my Super to a Pension Fund am I still able to withdraw lump sums if I need to?
Is the minimum draw of 4% or whichever it is decided on the 1st July for the year? or is it variable? as your account balance will be variable. If so, what period is it checked/confirmed/calculated?, or is it say 4% of the balance at the date of the withdrawal, ie. monthly, total balance at 4%/12 on the day. I guess I want to know if you start with a balance but have a terrible year and your balance takes a 20% hit, are you still locked to the $ value calculated, or the % of the balance now. Obviously if you choose annual I'd assume all best off, you take what's given on the day.
It is always based on your 1 July pension balance, unless you commence a pension part way through a financial year, in which case the 4% will be pro-rata, based on the number of days remaining in the financial year (at pension commencement), divided by the total days in the financial year.
You can. This is a common strategy for people who want to keep an accumulation account open for future contributions, have insurances they would like to keep in place, or are limited by the transfer balance cap.
Thank you for making this interesting video. I am 63 and really looking forward to organising myself. I would like to know PLEASE if I can withdraw 4% into my savings account from pension account as I am moving overseas with my wife for three years. I will have to stop work and call myself retired. Are we allowed to put money into super at all?. Thank you
Hi Dan, this will depend on your specific super fund fees. Most funds will not charge a fee for making a withdrawal, but there may be transaction costs if investments need to be sold to make the payment.
Can you have mutliple accounts? E.g. Say you had 2m in super, could you convert 1m into a pension account, draw the required % from that pension account, leaving the rest in a regular super account? Then move more over as needed. That way you can withdraw the mimimum, without being forced to withdraw more than necesary?
Yes. However, you need to mindful of the transfer balance cap. Only so much can be transferred into a pension account over a lifetime. Read more superguy.com.au/superannuation/super-transfer-balance-cap
I'm not sure I completely follow your question, but if you receive pension payments that you don't require, you may be able to recontribute these back into an accumulation account, provided you have the contribution caps available to you.
Hi Chris - are you able to pls explain Home Equity Access Scheme, and its advantages and disadvantages? I saw a video urging accessing it and investing into super or somewhere else, but since it is still a loan, it doesn't appeal much to me, but I could be incorrectly looking at this. Thanks!
So, lets say I have 1 million in super and decide to retire and move the super to a pension fund, at 65 is 5% which is 50K, does this allow for part government pension if no other asset are in the mix?
I doubt with 50,000 pa income you would qualify for any pension at all, as it would be classed as income. My neighbour only qualified for a very small part pension because his wife was working part-time!
I understand that in Pension mode you are not taxed on earnings up to $1.X Million (X can be 7 or 9 depending on when you started). Also even though you have to take out 4% - 14% (depending on your age), you can also put money back in. Is this correct?
Yes, but all contributions must be made to an accumulation account (a pension account cannot accept contributions) and you must be eligible to make such contributions. Read more here superguy.com.au/superannuation/how-much-super-can-i-contribute/
Hi, thanks for the very clear video. My question does the 15% earnings tax commence in the accumulation phase? Has it always been in place or only when you have reached the preservation age and eligible to access your Super? I have retired 3 years prior to when I can access Super so looking for clarification on this
you start paying 15% on your earnings in an accumulation account, the minute your contribution goes in (and starts earning). Its only if/when you convert to pension account that the earnings then stop being taxed.
Hi. I am 56 with about $1.2 million in my SMSF. I plan to work until I am about 62, and aim to have my SMSF at around $2 million at that time. From 60 onwards, if I TTR (via pension phase), can I (a) transfer only part of my SMSF accumulation funds to the pension account, and (b) vary my pension payments (from between 4% and 10%, depending on needs)? Where can I find information about these two topics (partial transfer to pension account, and varying my pension TTR withdrawal)?
Yes, you can based on current rules - assuming your SMSF trust deed allows it. All of this is contained within the Superannuation Industry Supervision Act and Regulations.
When I retire, I estimate I will still have around 400K in mortgage - but my super will be around 1.5 million I think. Can I take a portion of my super out to repay the outstanding mortgage balance?
If the rules where written in fineprint into a policy, I would not even down load the document or read it ever. This explanation here sounds fair to me Could I split my super into 2 super accounts, and then let one accumulate, and the the second turn into pension? Lets say i want to live 4-5 month over seas and 20.000 is too much to spend?
I'm not sure exactly what you are referring to. You may have a couple of rules crossed-over. Are you referring to superannuation earnings tax or tax on pension income?
When you sat *years* of service for a Defined Benefit, is that continous service? Or if there was a break in Employment with the same Corporation, is there only payment for the 2nd stanza?
Is there any difference between accumulation and pension when you die? Is the remaining balance still available for distribution according to your Will?
This video will answer your questions. Watch all of the video including 'things to consider' in order to understand different types of nominations and reversionary pensions ua-cam.com/video/Ti07mG06FGM/v-deo.htmlsi=dwqSDgYjoGSVGauW
I have always maintained a philosophical objection to being forced to contribute my income into superannuation which I cannot touch until my young years have past me by. I must pay interest on a house mortgage while my own money is kept away from me. Thankfully I worked overseas, was not forced to lock away my money for 40 years and could use it when I needed it most. When I’m in my 70s and can’t make regular overseas trips I’ll have no need for $2 million in a superannuation account.
I don't disagree with you. Especially considering that there is no requirement for the self-employed to contribute to super. In defense of this is that we have a very robust retirement system, largely due to forced retirement savings reducing the burden on the Age Pension. Despite this, I think superannuation remains a very viable structure to build wealth for retirement purposes, if utilised correctly.
I'm 34 I'm putting 27500 each year of super which will make me with compound interest a lot more than 3 million by 60. I got no house no mortgage. I don't want to give the bank 4.5% interest on a house deposit. Super is by far the best investment tax free you can do. At 60 I can buy house cash tax free, and live like a king. No even talking about the fact that I pay almost 0 income taxes... Different point of view superannuation is by far the best way to invest tax efficiency
Ok. But you'll pay top threshold tax rate on that money plus Medicare levy plus other levies if you're not with private health insurance, rather than just 15%. That is, you would otherwise pay at least 30% up to more than 40% of that money in tax and levies. That difference in tax and levies would be several times what your mortgage rate is. If you're on a 15% top threshold tax rate, then you probably don't have a mortgage. And in the end you'll be on a government pension when you retire, which you want to avoid at all costs. People who run their own businesses all have their own super schemes, and if they thought they could use that money better you can bet they would. Conservative Liberal Party politicians who are against universal super push this idea that people could pay off their mortgages are really just pushing the demand side of real estate that results in even higher house prices.
I’ve got good news for you. You’re not forced to put your own money into super. It’s your employer’s money. Putting your own money in is 100% optional.
@@tomflynn6635you obviously don't know the history of compulsory super contributions. Employees have accepted smaller in-hand wage increases, those handed down by the industrial courts, on the condition that the difference be put into super funds.
It's good, just does not explain how it relates to the smsf accounts. Does it mean the money can stay in the same smsf account, which, once you retire, becomes your pension account? Or, does this mean all the money will need to be transferred from the smsf account to a pension account once you retire. It'll be good to clarify this as well.
It relates exactly the same for SMSFs. Your SMSF is either in accumulation phase or pension phase (or possibly both). This is all recorded by the administrator of your SMSF. Upon retirement, you can either leave in accumulation or transfer to pension - which is all recorded on a ledger - assets should not need to be transferred anywhere. However, each SMSF is slightly different on how this is implemented. You should discuss with your SMSF administrator/accountant.
You can retire at any age in Australia. There is no requirement to work. This article explains more, including the different definitions of retirement superguy.com.au/retirement/what-age-can-i-retire-in-australia/
What are the problems of using imputation credits to minimise tax on accumulation phase accounts? Only withdrawing a yearly lump sums based on interest earned and keeping the 'principal' intact.
Nothing wrong with that. However, if it was in pension phase, you would still get the full imputation credit as a refund, but without having the credit effectively reduced by 15% tax.
Once I'm at preservation age, isn't it tax free? I had a successful tpd claim at age 58 and was taxed approx $11000 when withdrawal of $90000 ( to cover lawyer costs and tax to receive $70000) to purchase new vehicle ($48000) and remainder emergency money kept at home. Not huge amount in super $150000 after tpd insurance paid, left with $60000 left in super acc, no pension payments, just left in. I was under the impression that once I'm 60 , preservation age, any withdrawal would be tax free. Please advise as I shouldn't need to touch super balance again until preservation or even later.
You can invest your super/pension in cash and shares. But, yes, depending on the calculations it can still be beneficial to convert to pension phase, even if the income is more than you need. It really is a case-by-case basis.
Hi super guy. Can you take all lump sum from the pension phase in one year and start another pension phase next year. This would be like taking a lump sum from the accumulation without paying tax.
From my understanding, one has to start a TRIS account (transition to retirement income stream), and keep a separate accumulation account to take contribution. The TRIS balance is drawn 4-10% of its value each year until age 65 then full condition of release is met. I will start doing this from August 24
Thank you for this very clear and helpful video. I'm 62. If I retire and switch my SMSF into pension phase, can I still add money to it? For example, I am expecting an inheritance at some stage in future years. Also, I might take on some casual work.
In most cases, yes. A ledger is kept by the administrator of the SMSF to calculate how much is in pension phase and how much in accumulation. You should speak with the administrator of your SMSF about this and also make sure you understand the tax implications.
In my case I’ll be 60 years old next year and I’ve got around 500k in my super fund, but I’ve still got a mortgage of 150k how does that work out for me in paying off my mortgage as I’m a tradesman and I’m struggling to work with arthritis, I’ll appreciate your advice thank you
Once you're 60 you can make withdrawals from your super fund tax-free, so at that point you could take 150k out of your accumulation account to pay off your mortgage. You could then convert the rest into a pension account because as the video explains, any growth is tax-free, whereas if you leave it in your accumulation account the growth will be taxed at up to 15%. I also have arthritis so I feel your pain - literally.
@@MS-by7ry thank you so much for the kind advice I really appreciate it, Artists is retiring me early, I’m a carpenter and all those years since I was 15 has taken its toll, I’ve been worried about the retirement age for a few years now, I thought I wouldn’t be able to excess money from my super until I turned 67.5 years old, I just don’t think my body will hold out for a nother 8 years, Cheers mate Merry Christmas .
@@mdmelbourne6076 you're welcome, and a Merry Christmas to you too. You should always get professional advice before you make any major financial decisions. Your super fund should be able to give you some free impartial advice so you are aware of the pros and cons of any decision, before you go ahead. You'd have 350k left, so that should last you until you reach the Age pension age of 67, but you could also consider working part time too. If you're on a lower income you'll pay a lot less tax, so overall you might not be much worse off financially, but have a better work life balance.
Yes, what @MS-by7ry said is correct. Provided you meet the requirements to access your super in full, you should be able to withdraw the amount tax-free from age 60. If you do decide to get personal advice, you can learn more about our fees and services here superguy.com.au/advice-process/
@@mdmelbourne6076I'm in a similiar situation, except for the health part. The 67.5 age you mention - that refers to the age we are eligible to apply for the government age pension.
Sydney Australia,I can retire at 67 , ten years time.its my understanding that at that age 67 I’m able to access my super in its entirety to pay the balance of my mortgage,does that sound correct .?
You can actually access your Super after age 57, have a look at your Super statement it will probably tell you your preservation age, it's usually 57. Tax rate on withdrawal may be higher though.
@@hiwall4883 You can't access your super at 57 unless that's your preservation age AND you are retired. The OG's preservation age won't be 57 because they are younger than me and mine was 58 so their's will be an older age, most likely 60, but if they aren't retired, as they said they're working till 67, then they can't access their super at 60. You can access your super when you're 65, with or without retirement. So OG could pay their mortgage off when they are 65 if they are still working.
i wont need the money when i retire as wife will still be working. thinking of converting it to pension phase withdraw minimum then pay it back into her super.
Hi Chris, having super in pension phase can provide tax free investment earnings, which can be beneficial, even if you don't need the income. Just be mindful of any tax on pension payments if under 60 (as well as other risks watch this: ua-cam.com/video/EGYS3OjrAmo/v-deo.html - some of these risks apply to starting a pension ). Many people start a pension and contribute payments straight back into a super accumulation account. Just make sure you implement it all correctly! If you would like personal advice and assistance, feel free to contact us here www.torowealth.com.au/
Depends. If you are under preservation age, no. You once could, if leaving the country permanently, you could take your Superannuation with you, you can no longer do this. If your a temporary visa holder you can but you will be taxed 65% of your account. If you are over preservation age and are going overseas, you would meet a condition of release (no longer working) so would be able to.
Yes, provided you are eligible to access/withdraw your super, you can convert some or all of your super accumulation into an pension. In fact, if you are continuing to work, it can often be a good idea to leave some in accumulation so that contributions can continue to be received and insurances can remain in place.
![Superannuation Tax Changes at Age 60: What You Need To Know [Australia]](http://i.ytimg.com/vi/h7F7Fc_ZpnE/mqdefault.jpg)
Hey everyone, thanks for watching! Ready to take control of your retirement? Download our FREE 6-Step Superannuation Check today: www.superguy.com.au/super-tips/
I've reached 65 and even after talking to my accounted I was still unsure as to what to do with my super . You explained the different options very clearly . Thanking you muchly .
My mother retired 30 years ago on a defined benefit scheme and she receives an indexed pension.
Her friends who retired about the same time where she worked all took lump sums or the normal superannuation accumulation. They are all now on the aged pension and need help from family whereas my mum can help her family.
Unfortunately defined benefit schemes dont really exist anymore for people starting work so be careful with your money 😊
Source or God bless your mum.
The only important thing missed, to my mind, is "preservation age" for me is age 57, but there are some severe issues if I try to withdraw super at that age. Everything that I withdraw is considered income and I will be taxed on it - meaning I would lose a considerable amount of it. So the important point is waiting until the "real age" (not sure the correct term but is age 60) not just "preservation age"
Yes, there are tax considerations on withdrawing super under age 60, but not always. There are ways to receive it tax-free under 60, plus tax offsets that apply to income streams.
@@SuperGuyAu Thanks, actually, I think I'm wrong that my preservation age is 57. GPT steered me wrong somehow
Thnk you instead of calling contact centre you made it so easy to understand
Fantastic clear information. I am learning so much! Thank you : )
You're welcome. Glad you like it!
My wife and I have been learning as we go.
For example I believe you can’t normally add to your pension account but an exception is a “downsizer” payment when you sell your house and move into a retirement complex.
There is however a really complex process to make it happen. One we are in the midst of at the moment
So helpful! I'm 30 and trying to set myself up for the future. Most of the info I see is so US focused, so thank you!
You're welcome!
Great explanation made out of what should be easy but is a very confusing subject. Thank you for this great video.
Very good
Gains made in accumulation (Super) accounts are taxed 15% while gains made in pension accounts are tax free.
Correct!
Thanks, I am 65 Thinking of Retiring But need to find something to do before retiring. You gave a good explanation. I liked that no tax bit for Retirement account. The thing is have to take at least the defined percentage out.
Yes, that’s the trade off.
But you can recontribute what you don't need into a new accumulation account You can convert the new accumulation account to a new retirement account
Excellent video. Easy to understand when you explain this.
Thanks Mitchell. Appreciate the feedback.
If you plan to work part time or have other income you can have two super account, one for retirement income with zero tax and the other still in accumulation so you can still use to reduce tax from other income
Correct, contributions cannot be made to a retirement income account. So, if you intend on continuing to make or receive contributions after accessing your super, having an accumulation account and pension account is a structure that would work.
What if i decide to retire and transfer my super from my accumulation fund to retirement funds and withdraw the amount regularly as per the defined norm e.g. 4% or so, but i continue to earn business income from our Pty Ltd company. You will agree some businesses don't need full-time activity. Is it allowed by the law?
@@sbiswas5431 yes with a separate accumulation account to take the contribution.
I'll be 70 this year and still working
And have not done anything about retirement due to the fact that I don't trust anyone
Hope you have plenty of savings or other investment income. My parents missed out on super (none in their generation), downsized and invest the balance in "mum and dad" shares. It produce quite decent dividends, enough to live on without pension.
Good presentation, cheers!
Thank you, my parents sold their family farm and put the entire amount back into their super and moved into a retirement village with aged care facilities. Is the limit still 300K for housing sales before the government can start asking for money 💰
Great Work bro
Cheers!
Thank you for the talk, I really found it useful. ( have just subscribed.)
You're welcome, Mal. Glad it helped. Thank you very much for subscribing.
I flew Emirates Business back in 2016, had full car service at all destination which is now not offered. Still my favourite to date!
Qué?
Did Emirates fly you to another planet?
@SuperGuy great video - thank you for explaining this so clearly and concisely.
You're welcome. Thanks for the feedback!
Thanks for this will followup on the other videos really helpful
You're welcome. Glad it helped.
Very well explained and easy to understand!
Thanks John!
Thank you - this was very helpful!
No problem!
Thanks for the explanation ... much appreciated.
You're welcome! Thanks for watching.
Hello, are you able to take out lump sums in the pension account as well as the minimum % amount.
Thanks
Did you manage to find out?
Good video. One question when you transfer from a accumulation account to a pension account can you still withdraw lump sums from the pension account anytime you want to?
Thanks. Yes, you can.
Can you split your Super? Leave the majority in the accumulation and transfer a part to the Pension account to draw down on?
Yes, you can even leave specific assets in accumulation like negative geared real estate.
Just transfer the property to pension before you sell, avoids capital gains
Your videos are very helpful and appreciated. What happens if you have both defined benefit and accumulation? I’ve been with an employer for the last 3 years and have defined benefit from them but most of my super is accumulation.
Glad you like the videos. At retirement, you will be given options by your defined benefit super scheme.
Hey @SuperGuy, can you do both or is it all or nothing?
There is no requirement to transfer all of your accumulation balance to a pension account. You can transfer as much or as little as you like and you can make partial lump sum withdrawals at your discretion, provided you have met the full superannuation condition of release requirements.
I must have missed something. Assuming you were happy to draw the minimum amount as a pension why wouldn’t you transfer the whole accumulation amount over if they can both be invested the same and the pension account pays no tax?
You have not missed anything. There are dozens of simple super rules that can result in large tax savings once you understand how they're applied. For this rule specifically, you first need to be eligible to start a pension. You also need to be mindful of any insurances you have in place, or contributions you wish to claim a tax deduction for, before commencing a pension.
Income on top of your pension affects your pension also if you have an income stream
@SuperGuyAu Hi Super Guy, thanks for your very clear and thought-provoking content.
I like the concept of switching to pension mode and saving 15% on tax. If I keep a small part of my super as an accumulator account, can I still salary sacrifice into the accumulator account, and can I still pay post tax into the accumulator fund?
Can you take lumpsum withdrawals from your pension account though?
If so what’s the benefit of keeping it in Accumulation phase?
What if you are on a centerlink pension? Do you loose part of you pension when you withdraw that money in whichever way you decide to do so?.
Generally, the assessment of your super balance will be the same whether it is inside super or has been withdrawn and is outside super, if you are over Age Pension age. However, I would suggest seeking personal financial advice prior to making any lump sum withdrawals from super.
Great video. Thanks for sharing.
You're welcome. Thanks for taking the time to comment.
Thanks. Great video. Subscribed.
You're welcome. Thank you!
Great video Chris.
Thank you for that fabulous explanation. Now I understand it.
No problem... Happy to hear it was helpful!
Love the video: short and to the point. Can you please confirm that any withdrawals whether from the accumulation account or the pension account are both taxed at the person's marginal tax rate?
Glad to hear you liked it! Tax on super withdrawals will depend on your age, the tax components, and the type of withdrawal (lump sum or pension). Read more here superguy.com.au/superannuation/tax-on-super-withdrawals/
Agree with this, except 1 and 2 are the wrong way around in my opinion.
A personal diversified share portfolio trumps managed trumps managed funds hands down.
To many fees to much "cream off the top" taken out of a managed fund, paying for high salaries,not enough transparency.
I have had both, so i know from experience.
Well explained
Can I please ask some questions;
can you move funds from a Pension account back to an Accumulation account. If yes are they deemed a personal contribution subject to the contribution caps?
Can you vary the amount of the pension amount or once you set, say 5%, if the balance that is fixed? If it is fixed could you transfer funds to a 2nd pension account and would that be subject to the minimum pension amounts (%)
Any info appreciated
Cheers
Thanks. Yes, pension balances can be moved directly back to an accumulation account without it counting towards any contribution caps. Pension payments amounts are not fixed and can be altered at any time.
Congrats mate. New sub. Cheers.!
Thanks! Welcome!
Thank you so much. Was helpful
You're welcome. Thank you for your kind comments.
Thank you mate, very good information.
I am 57 and my wife is 52 both working. Am I eligible to get government pension after my retairment at 67? my wife should stop working?
And also what is the maximum amount we can keep in pension account to get government pension.
Thank you
I learnt something new, Helpful video
What about state govt funds that are untaxed until you remove the super?
Each of these work a little differently and have various rules. Most will allow you to take a lump sum, begin an income stream, or a combination of the two. Plus, tax will be deducted from the untaxed portion when the withdrawal occurs or pension commences. You will need to speak with your specific govt fund about how tax will apply on withdrawals and pension commencements.
Hi, thank you for the video, it was easy to follow. I am 64 and cannot retire untill i am 67. What happens if i continue working past my retirement age (part time or casual), can i have my super in the pension phase along side working? When does the pension phase need to be set up? Do I have to go to a financial advicer/planner to get this set up, and if so how much will this cost? Thank you for your help.
You should see a financial advisor, the benefits will outweigh the cost.
My understanding of the rules in AUS are that you can "retire" any time after 60. You need to provide evidence to your super fund that you have retired from work. At that stage all of your accumulation account can be moved to the tax free pension phase as mentioned in the video. You can earn part time/casual income after you "retire" buth there may be some restrictions.
Talk to a financial advisor.
Thanks for a great video happy to subscribe. I understand the differences between drawing income from Super in the different phases and the tax benefits but I wanted to ask about the fund itself. When in pension phase does the super fund become tax free also?. For example does any dividends from shares or income from bank accounts no longer attract the 15% tax thankyou.
Yes, all earnings derived from assets in retirement phase of superannuation (but not transition to retirement phase) are received tax free. This includes interest, dividends, capital gains, etc. Read more here superguy.com.au/superannuation/tax-on-super-earnings/
@@SuperGuyAu Thanks Chris
So nicely and simply explained. Is it possible to take a lump sum from the income stream account if required.
Thankyou. Yes, a lump sum if possible if you are retired. But, lump sum withdrawals cannot be taken from a TTR pension.
Thanks for the great video. Can I ask you a question? I believe there is a cap of about 2 million on how much I can transfer to begin a pension. If I have more than that, what do I do, what can I do, with the excess. For instance, if I had 3 million, then I think I can only transfer about 2 million to the pension phase, what do I do with the 1 million? Can that be left in the accumulation phase, or doe sit have to be withdrawn as a lump sum? Thanks kindly.
Can you withdraw all super money and invest it on your own? Thanks
You are only able to withdraw your money from super for personal use if you are eligible (usually retirement). Read more here www.superguy.com.au/superannuation/when-can-i-access-my-super/. As far as investment choice goes, you can always choose how your super is invested.
You mentioned that the investment earnings in the pension account are tax free. Is the pension amount received from the fund also tax free?
This depends on your age and the tax components within your super balance. Watch this video for more info ua-cam.com/video/3BlCQsUDDwM/v-deo.html
Hi there. Great video. Thank you. It caused me to think about my own circumstances and tax. I’m 65 and have a transition pension account from which i take the minimum each year. I also still work part time and have a super accumulation account. Thanks to you I now know that profits on that account are still taxed yet profits on the earnings of my transition account are not. Should/can I periodically transfer the balance of my accumulation account to my transition account?
Once you attain age 65, your transition pension account should convert to an ordinary account-based pension which provides tax-free earnings and no upper-limit on the income that you can drawdown. Double check with your super fund that your transition pension has converted into an account based pension, or ask them what needs to be done to do so. Yes, generally, accumulation funds can be transferred into a pension account periodically - this will increase your minimum pension amount in dollar terms.
Thanks, very informative about the differences. On the assumption that l don’t need additional pension income in retirement, what do u think is a better strategy- leave the lump sum in accumulation fund or convert the lump sum into a retirement pension income with the tax advantage?
The better strategy will depend on your situation. Leaving in accumulation phase means you aren't required to make withdrawals, but tax is up to 15% on earnings. Whereas, retirement pension accounts receive tax-free earnings, but a minimum pension must be taken. Keep in mind, if you are eligible to make contributions to an accumulation account, this could be an option, which may also have several tax benefits. I would suggest obtaining personal advice in relation to your situation. We offer this through Toro Wealth www.torowealth.com.au/
@@SuperGuyAu does putting in the pension scheme, stop you getting paid the aged pension though or part of.?
@@geoffdawes2297 If in receipt of Age Pension payments, converting your super accumulation into pension phase will not change your Age Pension entitlements, because super accumulation accounts and super pension accounts are assessed identically once you have reached Age Pension age.
Very helpful, thankyou.
Im 62 and looking to retire in the next year. Can I convert my super to a pension fund and then take large lump sums tax free to pay out my mortgage?
Withdrawals from super when age 60 or over are generally tax free. Read more here www.superguy.com.au/superannuation/how-much-can-i-withdraw-from-super-tax-free/
@@SuperGuyAu Thanks so much, appreciated, cheers
Thanks for the information. I understand there is a 4% minimum you have to take from your super pension account but is there a withdrawal limit?
If you have an ordinary account-based pension, there is no upper-limit on what you can withdraw. If you have a transition to retirement (TTR) pension, you are limited to 10% per financial year.
Thank for you video, I got a question though, let say I got 2 millions dollars of super, I transferred all into TTR account, I'm 60 and retired. The minimum withdraw is 4% but I can withdraw a lot more right? At the moment I'm making 140 000 dollars just on interest can I withdraw this each year or I can only do 4%?
Thanks :)
A TTR pension allows you to withdraw an income of between 4% and 10% of the balance each financial year.
Depends what super you are using
Economic investigator Frank G Melbourne Australia 🇦🇺 still watching this very informative content cheers Frank
Glad you enjoyed it
Hi Chris, superb UA-cam, thank you. I plan to retire when I'll turn 67 in Apr 2025, where I'll be eligible to a gov age pension. I have a decent supper balance too, but don't want to draw down it massively as our living is very modest and our mortgage was fully paid off. My wife is 4 years younger, so she won't get a pension until I'm 72 and she is a stay at home wife. My super fund calculator shows that we'll get around $17k pa as gov age pension and the balace to come from my super fund to receive a target total retirement income of $30k. Is that right? Do I have to pay tax if I draw down the gap from cumulative fund? If so, alternatively can I transfer a portion of my super balance to a pension fund to draw down, so I pay $0 tax?
Sounds like you've got a plan! Withdrawals from super are tax free from age 60, but the benefit of converting to an income stream is that earnings within the account become tax free compared to being taxed at up to 15% in accumulation phase.
@@SuperGuyAuthanks Chris. Am I allowed to transfer only a portion of my super balance to a pension a/c? If so, does the minimum % of annual income stream will be calculated on the balance of pension account?
Can you please explain why it is so difficult to get a UK super that is held in a SIP offshore into Australia. Why do you have to pay tax on your Super.
Thanks for your video. Please tell me, if I have both super investments and other investments from inheritance money then which should I draw down first in retirement.
You're welcome! There are several factors to consider prior to answering that question, such as your retirement objectives, your comfort with investment risk, tax on earnings and potential CGT, to name a few. See how personal advice could help answer your question by clicking here superguy.com.au/advice-process-video
Thanks for the great information.
One thing I’m unclear on, though - if I transfer my Super to a Pension Fund am I still able to withdraw lump sums if I need to?
Yes. Or just a one-off increased pension amount.
Is the minimum draw of 4% or whichever it is decided on the 1st July for the year? or is it variable? as your account balance will be variable. If so, what period is it checked/confirmed/calculated?, or is it say 4% of the balance at the date of the withdrawal, ie. monthly, total balance at 4%/12 on the day. I guess I want to know if you start with a balance but have a terrible year and your balance takes a 20% hit, are you still locked to the $ value calculated, or the % of the balance now. Obviously if you choose annual I'd assume all best off, you take what's given on the day.
It is always based on your 1 July pension balance, unless you commence a pension part way through a financial year, in which case the 4% will be pro-rata, based on the number of days remaining in the financial year (at pension commencement), divided by the total days in the financial year.
Unexpectedly, it just keeps growing, faster than we can spend it. But .. we have a Self Managed Fund. Therein perhaps, lies the difference.
Maybe!
Can you convert a percentage of your super to a pension fund, and leave the rest as accumulation?
You can. This is a common strategy for people who want to keep an accumulation account open for future contributions, have insurances they would like to keep in place, or are limited by the transfer balance cap.
Thank you for making this interesting video. I am 63 and really looking forward to organising myself.
I would like to know PLEASE if I can withdraw 4% into my savings account from pension account as I am moving overseas with my wife for three years. I will have to stop work and call myself retired.
Are we allowed to put money into super at all?.
Thank you
You can only add money into an accumulation account unless it is a home downsizer contribution
What are these fee's involved in drawing money from the pension account?
Hi Dan, this will depend on your specific super fund fees. Most funds will not charge a fee for making a withdrawal, but there may be transaction costs if investments need to be sold to make the payment.
Can you have mutliple accounts? E.g. Say you had 2m in super, could you convert 1m into a pension account, draw the required % from that pension account, leaving the rest in a regular super account? Then move more over as needed. That way you can withdraw the mimimum, without being forced to withdraw more than necesary?
Yes. However, you need to mindful of the transfer balance cap. Only so much can be transferred into a pension account over a lifetime. Read more superguy.com.au/superannuation/super-transfer-balance-cap
Great video, if I'm living and paying tax in Japan would this impact taking a tax free lump sum payment or annual payments from a pension account?
You would need to speak with a Japanese tax accountant to see what types of tax agreements exist between Australia and Japan.
Can you use some of your pension from super to invest in your accumulation account?
I'm not sure I completely follow your question, but if you receive pension payments that you don't require, you may be able to recontribute these back into an accumulation account, provided you have the contribution caps available to you.
Hi Chris - are you able to pls explain Home Equity Access Scheme, and its advantages and disadvantages? I saw a video urging accessing it and investing into super or somewhere else, but since it is still a loan, it doesn't appeal much to me, but I could be incorrectly looking at this. Thanks!
So, lets say I have 1 million in super and decide to retire and move the super to a pension fund, at 65 is 5% which is 50K, does this allow for part government pension if no other asset are in the mix?
I doubt with 50,000 pa income you would qualify for any pension at all, as it would be classed as income. My neighbour only qualified for a very small part pension because his wife was working part-time!
I understand that in Pension mode you are not taxed on earnings up to $1.X Million (X can be 7 or 9 depending on when you started). Also even though you have to take out 4% - 14% (depending on your age), you can also put money back in. Is this correct?
Yes, but all contributions must be made to an accumulation account (a pension account cannot accept contributions) and you must be eligible to make such contributions. Read more here superguy.com.au/superannuation/how-much-super-can-i-contribute/
Hi, thanks for the very clear video. My question does the 15% earnings tax commence in the accumulation phase? Has it always been in place or only when you have reached the preservation age and eligible to access your Super? I have retired 3 years prior to when I can access Super so looking for clarification on this
you start paying 15% on your earnings in an accumulation account, the minute your contribution goes in (and starts earning). Its only if/when you convert to pension account that the earnings then stop being taxed.
Hi. I am 56 with about $1.2 million in my SMSF. I plan to work until I am about 62, and aim to have my SMSF at around $2 million at that time. From 60 onwards, if I TTR (via pension phase), can I (a) transfer only part of my SMSF accumulation funds to the pension account, and (b) vary my pension payments (from between 4% and 10%, depending on needs)? Where can I find information about these two topics (partial transfer to pension account, and varying my pension TTR withdrawal)?
Yes, you can based on current rules - assuming your SMSF trust deed allows it. All of this is contained within the Superannuation Industry Supervision Act and Regulations.
When I retire, I estimate I will still have around 400K in mortgage - but my super will be around 1.5 million I think. Can I take a portion of my super out to repay the outstanding mortgage balance?
That's certainly an option! If you would like some help when the time comes, feel free to get in touch with us www.torowealth.com.au/advice-process/
If the rules where written in fineprint into a policy, I would not even down load the document or read it ever. This explanation here sounds fair to me
Could I split my super into 2 super accounts, and then let one accumulate, and the the second turn into pension? Lets say i want to live 4-5 month over seas and 20.000 is too much to spend?
Can I withdraw all my super invested all at one ??
I recommend you speak to your financial adviser as this will depend on whether or not you meet a full super condition of release.
Hi Chris, great information. Do you get taxed the 15% from the mandatory 4% (I'm under 65) to go into the Pension account?
I'm not sure exactly what you are referring to. You may have a couple of rules crossed-over. Are you referring to superannuation earnings tax or tax on pension income?
When you sat *years* of service for a Defined Benefit, is that continous service? Or if there was a break in Employment with the same Corporation, is there only payment for the 2nd stanza?
It depends on the rules of the specific defined benefit scheme.
Is there any difference between accumulation and pension when you die? Is the remaining balance still available for distribution according to your Will?
This video will answer your questions. Watch all of the video including 'things to consider' in order to understand different types of nominations and reversionary pensions ua-cam.com/video/Ti07mG06FGM/v-deo.htmlsi=dwqSDgYjoGSVGauW
I have always maintained a philosophical objection to being forced to contribute my income into superannuation which I cannot touch until my young years have past me by. I must pay interest on a house mortgage while my own money is kept away from me. Thankfully I worked overseas, was not forced to lock away my money for 40 years and could use it when I needed it most. When I’m in my 70s and can’t make regular overseas trips I’ll have no need for $2 million in a superannuation account.
I don't disagree with you. Especially considering that there is no requirement for the self-employed to contribute to super. In defense of this is that we have a very robust retirement system, largely due to forced retirement savings reducing the burden on the Age Pension. Despite this, I think superannuation remains a very viable structure to build wealth for retirement purposes, if utilised correctly.
I'm 34 I'm putting 27500 each year of super which will make me with compound interest a lot more than 3 million by 60. I got no house no mortgage. I don't want to give the bank 4.5% interest on a house deposit. Super is by far the best investment tax free you can do.
At 60 I can buy house cash tax free, and live like a king. No even talking about the fact that I pay almost 0 income taxes...
Different point of view superannuation is by far the best way to invest tax efficiency
Ok. But you'll pay top threshold tax rate on that money plus Medicare levy plus other levies if you're not with private health insurance, rather than just 15%. That is, you would otherwise pay at least 30% up to more than 40% of that money in tax and levies. That difference in tax and levies would be several times what your mortgage rate is. If you're on a 15% top threshold tax rate, then you probably don't have a mortgage. And in the end you'll be on a government pension when you retire, which you want to avoid at all costs.
People who run their own businesses all have their own super schemes, and if they thought they could use that money better you can bet they would. Conservative Liberal Party politicians who are against universal super push this idea that people could pay off their mortgages are really just pushing the demand side of real estate that results in even higher house prices.
I’ve got good news for you. You’re not forced to put your own money into super. It’s your employer’s money. Putting your own money in is 100% optional.
@@tomflynn6635you obviously don't know the history of compulsory super contributions. Employees have accepted smaller in-hand wage increases, those handed down by the industrial courts, on the condition that the difference be put into super funds.
It's good, just does not explain how it relates to the smsf accounts. Does it mean the money can stay in the same smsf account, which, once you retire, becomes your pension account? Or, does this mean all the money will need to be transferred from the smsf account to a pension account once you retire. It'll be good to clarify this as well.
It relates exactly the same for SMSFs. Your SMSF is either in accumulation phase or pension phase (or possibly both). This is all recorded by the administrator of your SMSF. Upon retirement, you can either leave in accumulation or transfer to pension - which is all recorded on a ledger - assets should not need to be transferred anywhere. However, each SMSF is slightly different on how this is implemented. You should discuss with your SMSF administrator/accountant.
I am 57 years old.. can I retire at this age? And what would be my options?
You can retire at any age in Australia. There is no requirement to work. This article explains more, including the different definitions of retirement superguy.com.au/retirement/what-age-can-i-retire-in-australia/
What are the problems of using imputation credits to minimise tax on accumulation phase accounts? Only withdrawing a yearly lump sums based on interest earned and keeping the 'principal' intact.
Nothing wrong with that. However, if it was in pension phase, you would still get the full imputation credit as a refund, but without having the credit effectively reduced by 15% tax.
Once I'm at preservation age, isn't it tax free? I had a successful tpd claim at age 58 and was taxed approx $11000 when withdrawal of $90000 ( to cover lawyer costs and tax to receive $70000) to purchase new vehicle ($48000) and remainder emergency money kept at home. Not huge amount in super $150000 after tpd insurance paid, left with $60000 left in super acc, no pension payments, just left in. I was under the impression that once I'm 60 , preservation age, any withdrawal would be tax free. Please advise as I shouldn't need to touch super balance again until preservation or even later.
withdrawal is tax free. Earning from the super fund in accumulation is taxed at 15%. 0% if in a pension account.
Thanks for the sharing!
You're welcome!
That is good. But what if you have cash and shares?? Is it still better to put into pension and get then invest in shares if you can’t spend it all???
You can invest your super/pension in cash and shares. But, yes, depending on the calculations it can still be beneficial to convert to pension phase, even if the income is more than you need. It really is a case-by-case basis.
Hi super guy. Can you take all lump sum from the pension phase in one year and start another pension phase next year. This would be like taking a lump sum from the accumulation without paying tax.
I’m not sure I follow. Why take the whole pension balance only to start another pension. What’s wrong with the first pension?
If i am working part-time/TTR can I still contribute to my Super balance? Is it possible to pay into super at the same time as withdrawing out of it?
From my understanding, one has to start a TRIS account (transition to retirement income stream), and keep a separate accumulation account to take contribution. The TRIS balance is drawn 4-10% of its value each year until age 65 then full condition of release is met. I will start doing this from August 24
What is productivity tax on my super account
Thank you for this very clear and helpful video. I'm 62. If I retire and switch my SMSF into pension phase, can I still add money to it? For example, I am expecting an inheritance at some stage in future years. Also, I might take on some casual work.
In most cases, yes. A ledger is kept by the administrator of the SMSF to calculate how much is in pension phase and how much in accumulation. You should speak with the administrator of your SMSF about this and also make sure you understand the tax implications.
If converted from accumulation to pension income account, can the total lump sum be withdrawn from the income account at any time prior to death?
Yes, if it is an account based pension.
In my case I’ll be 60 years old next year and I’ve got around 500k in my super fund, but I’ve still got a mortgage of 150k how does that work out for me in paying off my mortgage as I’m a tradesman and I’m struggling to work with arthritis, I’ll appreciate your advice thank you
Once you're 60 you can make withdrawals from your super fund tax-free, so at that point you could take 150k out of your accumulation account to pay off your mortgage. You could then convert the rest into a pension account because as the video explains, any growth is tax-free, whereas if you leave it in your accumulation account the growth will be taxed at up to 15%. I also have arthritis so I feel your pain - literally.
@@MS-by7ry thank you so much for the kind advice I really appreciate it,
Artists is retiring me early, I’m a carpenter and all those years since I was 15 has taken its toll,
I’ve been worried about the retirement age for a few years now, I thought I wouldn’t be able to excess money from my super until I turned 67.5 years old, I just don’t think my body will hold out for a nother 8 years,
Cheers mate Merry Christmas .
@@mdmelbourne6076 you're welcome, and a Merry Christmas to you too. You should always get professional advice before you make any major financial decisions. Your super fund should be able to give you some free impartial advice so you are aware of the pros and cons of any decision, before you go ahead. You'd have 350k left, so that should last you until you reach the Age pension age of 67, but you could also consider working part time too. If you're on a lower income you'll pay a lot less tax, so overall you might not be much worse off financially, but have a better work life balance.
Yes, what @MS-by7ry said is correct. Provided you meet the requirements to access your super in full, you should be able to withdraw the amount tax-free from age 60. If you do decide to get personal advice, you can learn more about our fees and services here superguy.com.au/advice-process/
@@mdmelbourne6076I'm in a similiar situation, except for the health part. The 67.5 age you mention - that refers to the age we are eligible to apply for the government age pension.
I want it now not in 16yrs now I'll be 50 next year and I need it
Sydney Australia,I can retire at 67 , ten years time.its my understanding that at that age 67 I’m able to access my super in its entirety to pay the balance of my mortgage,does that sound correct .?
You can actually access your Super after age 57, have a look at your Super statement it will probably tell you your preservation age, it's usually 57. Tax rate on withdrawal may be higher though.
@@hiwall4883, wow thanks. My preservation age is 60 I believe, and am I right in thinking that I can only draw on it if I’m not working?
@@hiwall4883 You can't access your super at 57 unless that's your preservation age AND you are retired. The OG's preservation age won't be 57 because they are younger than me and mine was 58 so their's will be an older age, most likely 60, but if they aren't retired, as they said they're working till 67, then they can't access their super at 60. You can access your super when you're 65, with or without retirement. So OG could pay their mortgage off when they are 65 if they are still working.
You can access your super tax free at 60. Do not take it before then. if you are 57 now your preservation age will be 60.
Your age group can retire any time from when you attain age 60.
i wont need the money when i retire as wife will still be working. thinking of converting it to pension phase withdraw minimum then pay it back into her super.
Hi Chris, having super in pension phase can provide tax free investment earnings, which can be beneficial, even if you don't need the income. Just be mindful of any tax on pension payments if under 60 (as well as other risks watch this: ua-cam.com/video/EGYS3OjrAmo/v-deo.html - some of these risks apply to starting a pension ). Many people start a pension and contribute payments straight back into a super accumulation account. Just make sure you implement it all correctly! If you would like personal advice and assistance, feel free to contact us here www.torowealth.com.au/
Hi - regarding this withdraw & recontribution idea, assuming you are at least 60, what is an example of someone not implementing this correctly ?
Can we withdraw the whole amount in Super to start a new life overseas?
Depends. If you are under preservation age, no. You once could, if leaving the country permanently, you could take your Superannuation with you, you can no longer do this.
If your a temporary visa holder you can but you will be taxed 65% of your account.
If you are over preservation age and are going overseas, you would meet a condition of release (no longer working) so would be able to.
Still confusing
At retirement if I withdraw all my super (one lump sum) do I need to pay 15% tax?
It depends on your age and the tax components, but generally not if you are age 60 or over.
Seems to be an income stream for the kids. Signed Pissed.
Can I make my accumulation super into say 1/2 accumulation and 1/2 pension ?
Yes, provided you are eligible to access/withdraw your super, you can convert some or all of your super accumulation into an pension. In fact, if you are continuing to work, it can often be a good idea to leave some in accumulation so that contributions can continue to be received and insurances can remain in place.