Leaving Super in Accumulation Phase

Previous

Next

4 Comments

  1. tony

    hi chris love your work. hope you can help me!..born 15 07 61, want to ” retire ” withdraw $100,000.. pay off my house. and after maybe 2+ months go back to work as fulltime casual. Is this all possible and legal…thankyou.

    Reply
    • Chris Strano

      Hi Tony, thanks!
      Your superannuation preservation age is 57, which you have met. This means that you could have unrestricted access to your super if you were to retire with no intention of returning to work. This could also be accessed tax free using the low rate cap amount. However, if you intend on returning to work, it is not possible to access your super in this way.
      The other alternative may be to wait until age 60, which provides you with the ability to have full access to your super if you ‘cease an employment arrangement after turning age 60’ – regardless of whether you return to work or not.
      Hope this helps,
      Chris

      Reply
  2. Danielle Pacaud

    Hi Chris I am age 66. I have very little super (about 50k) and my sole asset is my house, which includes an Airbnb flat. I have a mortgage owing of c80k. My Airbnb earnings can be quite comfortable, (60k in 2019 -apart from Covid). It is a redraw mortgage so I can redraw a further c$80k. I live on the edge of Hobart which is somewhat bushfire prone. This causes me a bit of anxiety because, although I have insurance, if my house burnt down I’d have no where to live, no income, and no funds to rebuild until an insurance claim was settled… then there is the time it takes to build. So I had a thought to redraw funds from my mortgage and put that into my super over summer. Then put it back after the bushfire season is over. Is that OK? I could just take $25k. Or I could take $80k. Then can I take the money out of Super and put it back into the mortgage account in the autumn? I believe this incurs no charges. Is there any danger of incurring tax?

    Reply
    • Chris Strano

      Hi Danielle,
      I think the strategy you propose might be adding more complexity than is necessary. If I were you I would consider asking your bank about how a similar outcome could be achieved using a mortgage offset account and see if that option might relieve some anxiety. Ask your lender about any fees and risks associated.
      Regards,
      Chris

      Reply

Submit a Comment

Your email address will not be published. Required fields are marked *