Newspaper article The Daily Mercury (Mackay, Australia)

Knowledge of Those Super Rules Is First Essential Step

Newspaper article The Daily Mercury (Mackay, Australia)

Knowledge of Those Super Rules Is First Essential Step

Article excerpt

NOEL WHITTAKER

Finance specialist

"HOW can I access my superannuation" is a common question. Access is generally restricted to those who have reached their preservation age, which is 55 for those born before 1 July 1960. The preservation age then rises until age 60, which is applicable for people born after 30 June 1964.

However, until you are 65 you cannot simply withdraw your superannuation once you reach your preservation age. If you are between 55 and 60 you must sign a statement that you intend to retire permanently. Of course, retirement is a state of mind and after retiring you could at some stage in the future decide you are tired of doing nothing and return to the workforce without penalty.

If this is your intention keep in mind that there may be tax to pay on money you withdraw before you turn 60. The first $180,000 of the taxable component is tax-free but withdrawals in excess of that suffer a tax of 15% plus Medicare levy. …

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