You have worked your bottom off for your adult life, hopefully built an awesome retirement nest egg and now wandering if its time to retire an drawdown on your Super. Unfortunately, the government has mandated when you can access your Super. Soits not as simple as just withdrawing from your SMSF, you must meet the preservation age.
What is Preservation Age?
Preservation age is generally the age that you are able to legally access your super. When considering to access your super, careful consideration and advice is required to determine your retirement strategy and maximise the tax consequences of the withdrawal. For example, you may have to pay tax if you withdraw before the age of 60, either through a income stream or as a lump sum – although some of it may be tax free.
You can access your super:
- When you turn 65
- When you reach your preservation age and permanently retire
- When you cease paid work after the age of 60
- After you become permanently disabled or ill
- When you become permanently retired and start an income stream
- When you apply for hardship provisions or compassionate grounds
What is my Preservation Age?
For any person born after 30 June 1964, the preservation age is 60.
If you are 30, 40, 50 or approaching 60, its important to formulate a strategy for your retirement.
Ivan Filipovic is a leading SMSF Specialist Advisor with Redwood. Ivan has over 18yearsexperience providing a range of services across all sectors of Self Managed Superannuation, Property and Finance with an emphasis on long term wealth strategies. Ivan is a Chartered Accountant, ASIC registered SMSF auditor, Mortgage Broker and Licensed Property Professional.
Disclaimer – The content has been prepared by Redwood Wealth Pty Ltd without taking account of the objectives, financial situation or needs of a particular individual and does not constitute financial product advice. This article should not be considered personal financial advice as it is intended to provide factual information only.