Author Topic: Preservation Age and your Super  (Read 1442 times)

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Offline McGirr

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Offline old_dog

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Re: Preservation Age and your Super
« Reply #1 on: April 02, 2017, 12:38:40 AM »
That depends on what you mean by "Anyone done it?"

Retired? You bet! Three years ago.
Reached Preservation Age? Yes, just last Friday.

So if you do the math, I retired three years ago but only just reached my preservation age two days ago! But yes, I have been on a Super pension since I retired.

Important point: you do not have to reach your preservation age before accessing your super. There are circumstances when you can access it early. However, there are different tax treatments to consider so you should seek financial advice from someone qualified and trusted to give financial advice. And in case you are wondering, I did not retire due to ill health (one potential reason to access super early.) Redundancy is another potential reason but there are more.

I am not qualified to give financial advice: I'm too busy enjoying retirement!  :cheers: :cheers:

Offline Roo

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Re: Preservation Age and your Super
« Reply #2 on: April 02, 2017, 07:20:02 AM »
I "semi" retired 3 years ago but my preservation date wont be along for another 15yrs.😎

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Offline envee

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Re: Preservation Age and your Super
« Reply #3 on: April 02, 2017, 09:20:37 AM »
I accessed mine last year when I turned 60 even tho I am still working full time.  I did it so that I can use it to pay off the mortgage quicker, once you set up a pension fund there are minimum amounts that you have to draw down and because I am still working full time there is a maximum (10%) that i can draw each year.  I waited until I was 60 for the tax advantages but could have done it at 55.

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Offline rossm

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Re: Preservation Age and your Super
« Reply #4 on: April 02, 2017, 09:34:21 AM »
Many people access super without retiring through the transition to retirement scheme.

The rules for this are about to change.

http://www.smh.com.au/money/super-and-funds/money-for-nothing-why-transition-to-retirement-pensions-still-work-20170330-gv9odn.html

Offline Gandalf the White

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Re: Preservation Age and your Super
« Reply #5 on: September 14, 2019, 04:47:14 PM »
Thought I’d rekindle an existing albeit old (possibly retired) thread.

I know this place is full of old farts, and I reached my preservation age this year, so wondering if anyone else has taken the Transition to Retirement option on their superannuation recently.

I have my annual tax & accountant catch up in 3 weeks and seriously looking at this for some continuity of a fixed monthly income, while still allowing my regular & adhoc work to be paid back into the primary super account etc.

I’ve read there is a 15% tax levy will apply to the drawings and I can only access a maximum of 10% each year as I’m not quite pension age as yet, but I’m thinking this tax will be offset with the adhoc contributions into super possibly being tax free.

Interested in what others may have done and anything I need to be aware of.

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Offline gronk

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Re: Preservation Age and your Super
« Reply #6 on: September 14, 2019, 05:06:05 PM »
I reached my preservation age 5 yrs ago, but I'm still working. But I have also "unpreserved" all my super so I can access some when I need to. I don't believe you can "unpreserve" it while you are working, but I did mine after being retrenched a few yrs ago.

I probably won't do a transition to retirement , but anyone who does needs to talk to someone to make sure they have enough when they actually do retire and also any tax requirements.
« Last Edit: September 14, 2019, 05:07:51 PM by gronk »
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Offline dogbox

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Re: Preservation Age and your Super
« Reply #7 on: September 15, 2019, 09:16:51 AM »
one option if your still working(an some people like working) is the transition to retirement payment and salary sacrifice your pay to reduce tax

Offline xcvator

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Re: Preservation Age and your Super
« Reply #8 on: September 15, 2019, 10:08:12 AM »
1st step, talk to Centre Link, they have financial advisers.
2nd step, find and talk to a good financial adviser (this will cost $$)
3rd step, talk to your accountant.
4th step,  Make as an informed decision as you can with the information that you have collected
We went through this whole process a few years ago, it cost us about $3500 , but it saved us a sh1t load more than that as nearly everything we thought we could do was wrong, including a lot of what our accountant told us, They know the financial rules but not the government retirement/superannuation always since they change them all the time
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Offline Gandalf the White

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Re: Preservation Age and your Super
« Reply #9 on: September 15, 2019, 06:01:18 PM »
one option if your still working(an some people like working) is the transition to retirement payment and salary sacrifice your pay to reduce tax
thnx, this sounds like where I’m planning on heading. Being self employed now (made redundant 2 years ago) I bank an amount each month in preparation for a tax bill, but suspect it’s going to be much less that I have banked and could have used this to live on monthly, (but still have to put aside etc).
I may not be that funny or good looking or talented or smart or athletic but

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Offline noel_w

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Re: Preservation Age and your Super
« Reply #10 on: September 19, 2019, 02:25:16 PM »
I was divorced a few years ago where all my part of the separation agreement went into my super as untouchable funds. I did not have any bargaining power with this and in some respects may have been a good idea as i may have spent a lot of it by now.
But recently a fair few large bills have come through which my wages have not been able to cover and my credit card was reaching Chernobyl proportions.
So I bit the bullet and set up a transition to retirement scheme to pay the bills until I retire.
I didn't really have a choice in the matter as no financial institution wanted to give a 64 yo single bloke any money.
Hopefully it will tide me over until I retire when a lot of my outgoings will cease and I can spend my hard earned on something I like rather than dead rent etc.
Not sure it was a great idea but had to do it quickly and was my only real option I could see. Besides I can always pay the TTR payments back into my super when the bills are paid.
Time will tell.
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