Ready to Withdraw Your Super? Here are the First Steps
You’ve worked hard all your life, whether in an employed role, in business or by caring for family at home – or all the above! Now it’s time to turn the page and start a new chapter – that of retirement.
As with anything new, this next step comes with a bit of a learning curve. Planning for retirement isn’t as simple as “quitting your job”. It’s time to get a grip on how to access your superannuation.
When Can You Withdraw Your Superannuation?
In most cases, you can only access your super once you’ve reached preservation age. This may be between 55 and 60 years old, depending on when you were born and when you retire.
There are some exceptional circumstances where you can withdraw some or all of it sooner. This might be in the case of severe financial difficulty or a medical emergency. Remember that this will reduce the value of your investment though.
Show Me the Money! How to Get Your Cash
Depending on your super fund, accessing your super can be as easy as logging into your online account and choosing the option which allows you to withdraw funds from your account.
It’s worth giving your superannuation fund provider a call to talk through the next steps. If they need anything extra from you, this is when they’ll let you know.
This conversation can also be a good opportunity to talk through your future plans, and how you intend to use your super to support them. Based on this, you’ll have to make some important decisions about how your money is paid out.
Important Decisions
Once you’ve retired, you will have to decide on the best strategy for a comfortable retirement. This will vary on a case-by-case basis.
You may decide to draw all or part of your super out as a lump sum. This can be used to pay off the remaining mortgage on your property or set yourself up with a great caravan to head off on the great grey nomad adventure.
Generally, it is best to keep at least part of your super in investments. This will provide you with a regular income for as long as you have funds available.
In this case, you may be able to access some of your super while you keep working, so that you can wind down a bit while continuing to stay active. Alternatively, you can choose to retire fully and have a regular income paid into your account.
If in any doubt as to the best option for you, be sure to seek reliable advice. Speak with an accountant and taxation consultant or financial planner to make the right decisions for your specific circumstances.
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