Retirement is something that can be daunting for many individuals. While it is a milestone that many look forward to, it also brings the challenge of having to manage finances to ensure that you are able to maintain your lifestyle in the years to come. One of the most important tools individuals have in planning for retirement is their superannuation. Knowing when and how to access your super can be a tricky thing to navigate.
Accessing Super at 55
When it comes to accessing your superannuation, the age you can start to access it depends on when you were born. For those born before July 1, 1960, you can access your superannuation at age 55. For those born after this date, the age you can access your super increases incrementally, until it reaches the age of 60 for those born after July 1, 1964.
When you access your superannuation, you will be able to withdraw up to 85% of your superannuation balance as a lump sum payment. You will also be able to access the remaining 15% as an income stream, such as a pension or annuity.
Working After Age 55
It is possible to access your superannuation at age 55 and still work. The rules around this can be quite complex, so it is important to seek advice from a financial adviser to ensure you are meeting all the requirements. Generally speaking, you can access your superannuation at age 55 and continue to work, as long as you are not in receipt of a salary or wage from the same employer you had when you made the superannuation contribution.
It is also important to note that if you do access your superannuation before the age of 60, the amount you can withdraw is subject to tax. You will also need to be aware of any Centrelink requirements that may apply if you are accessing your superannuation at age 55.
Accessing your superannuation at age 55 can be a great way to start planning for retirement. However, it is important to ensure that you are familiar with the rules and regulations around accessing your super, as well as any tax and Centrelink implications. Seeking advice from a financial adviser can help you to ensure that you are making the right decisions for your financial future.
