Can I Access My Super At 55 And Still Work?

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20 Comments

  1. Mary anne

    Hi my name is mary im 62 and work 3 days aweek can i take a small amount out of my supper which is 98000 at this moment

    Thankyou

    Reply
    • Chris Strano

      Hi Mary,
      If you have had an employment arrangement come to an end after reaching age 60, then you can apply to have full unrestricted access to the level of super you had at that time.
      Alternatively, because you are over your preservation age, you can start a transition to retirement (TTR) pension, which allows you to withdraw up to 10% of your account balance each year – regardless of your employment status.
      I suggest you contact your superannuation provider or contact a financial adviser to discuss your options based on your personal situation.

      Reply
    • Kelly

      Hi can you access your Super via the TTR stream at any time of the year or is it only able to accessed in July?

      Reply
      • Chris Strano

        Hi Kelly, any time of the year is fine. The minimum poension icnome requiirement of 4% will be calculated on a pro-rata basis and the maximum of 10% will remain at 10%, regardless of the time of year.

        Reply
  2. Janelle Begg

    Hi my name is Janelle and I am 57 soon to be 58, I work a couple of days a week. I don’t have a large amount in my super but I am finding it a bit tough, as I have reached preservation age can I apply to have an amount each fortnight directed to me.

    Reply
    • Chris Strano

      Hi Janelle,
      A person is able to access their superannuation if they have reached their superannuation preservation age. Click here to see preservation ages based upon date of birth.
      A person who has retired with no intention of ever returning to full-time or part-time work has met a full superannuation condition of release and can have unrestricted access to superannuation savings, after declaring to the trustee of their super fund that such an event has occurred. However, tax may be payable on withdrawals if under age 60.
      If a person has reached their preservation age, but does not intend to permanently retire, they can still access their super via the ‘transition to retirement’ provisions, which allows the member to nominate an income of between 4% and 10% of their account balance each financial year. The frequency options of the payments are determined by the superannuation provider, but are most often monthly.
      Again, tax may be payable. Read here for more about tax on the taxable components.

      Reply
  3. Jennifer soutar

    Hi can you access a lump sum of your super when you turn 60 and are still working

    Reply
    • Chris Strano

      Hi Jennifer, under normal circumstances, you can only access a lump sum under age 65 if you had an employment arrangement come to an end when you were over age 60 (even if you returned to a new job after that employment arrangement came to an end). If this has not occured, your only other option is generally to commence a TTR pension, whcih can provide you with up to 10% of your account balance each financial year as pension payments.
      Related Posts:
      Definition of Retirement for Super Purposes
      Can I Make Lump Sum Super Withdrawals?

      Reply
  4. Marie

    Hi,
    I will be 59 in June this year, reached my preservation age of 55 being born before 1st July 1960. I am a single person, work permanent part time, fall into the low income bracket, and don’t have the financial means to purchase a car cash or able to afford to purchase a car under finance. Is there a way for me to withdraw a lump sum from my super to purchase a car which I need to get to work and for general living. I am not in receipt of any Centrelink payments, so how can I do this?
    Thank you

    Reply
    • Chris Strano

      Hi Marie, having reached your preservation age, you should be able to use your super to start a TTR pension, which allows you to receive a pension income up to 10% of your account balance each financial year. You are usually unable to access your super as a lump sum while under age 65, unless you have retired.
      Speak to your super fund about your ability to start a TTR pension, but be aware that there may be CGT implications, transaction costs, etc. because you are basicaaly transferring your super savings to a new account. Also, being under age 60, some or all of the pension income received will likely be taxable in your own name. There is also a requirement each year to draw a minimum pension income amount, which will reduce your super savings, but you can return your TTR pension back to accumulation phase after you have withdrawn the money you need.
      Related Posts
      Accumulation vs Pension Phase

      Reply
  5. Vicki-lee Wasley

    HI
    I am at preservation age of 57 born 17th Nov 1961 at present a I work 3 days at week and super is paid into one of my super accounts. The other account sits dormant, can I change that one into a TTR Pension Account and keep the other for Work? Can I also use my super to purchase a car or borrow against it?

    Reply
  6. Lili

    Hi Chris,

    I’m 57 still working full time and renting, can I use my super for part of deposit to buy a house or borrow against it.

    thanks

    Reply
    • Chris Strano

      Hi Lili,
      If you are still working, you are usually only able to have limited access to your super in the form of a transition to retirement (TTR) income stream if you have reached you superannuation preservation age. A TTR income stream allows income payments of up to 10% of your account balance each financial year. If you have not reached your preservation age, you are generally unable to access your super.
      Hope this helps,
      Chris
      Related Posts:
      Can I Borrow Against My Super?
      Transition to Retirement Rules

      Reply
  7. Maria Castrogiovanni

    Hi Chris,
    I’m Maria, my inquiry is about buying a home to live in as a deposit with Super… is it really possible … I have around $100000 in super…I’ve inquired before about the SMSF… but I didn’t ha e enough.. advised it was too costly.
    Thank you

    Reply
  8. Cheryl Krause

    Hi Chris
    If I have taken a lump sum of $80,000 from my superannuation under the preservation rules (I am 57) and my circumstances have changed and I need to return to work within the same tax year that I received the payout, what would be the tax implications for that $80,000? Would it be impacted by my return to work income for that tax period and I end up having a tax debt on the superannuation lump sum?

    Reply
    • Chris Strano

      Hi Cheryl,
      Your return to work is irrelevant when determining the taxation of a superannuation withdrawal. Provided the taxable component of your withdrawal was under the lifetime low-rate cap amount, no tax should be payable. This should be confirmed by your accountant.

      Reply
      • Brian spark

        Trying to find an answer to question , someone told me I could withdraw my super at age 55 sign a document never to work in Australia again , an move overseas is this correct or is it illegal

        Reply
        • Chris Strano

          Hi Brian, the first step is to determine if you have reached your superannuation preservation age. The earliest preservation age is 55; however, yours will depend on when you were born. If you have reached your preservation age and are retired with no intention of working again, then you can generally access your super in full. Just be mindful of potential tax payable upon withdrawal.
          Chris
          Related Posts
          What Is My Preservation Age?
          Tax on Super Withdrawals

          Reply

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