www.esuperfund.com.au

Age 60 to 64 & NOT Retired


chat pdf print

 
 
Accessing your Super Benefit when aged between 60 and 64 and NOT "Retired"

If you are aged between 60 and 64 your Super Benefit is preserved until your Retirement.  You can only access your Super Benefit as a Transition to Retirement Pension (TRAP) as detailed below when aged between 60 and 64 if you are NOT "retired".

 
 
Definition of "Retirement" when aged between 60 and 64

For a person between 60 and 64, retirement means you simply need to cease your employment.  The intention to return to the workforce is irrelevant.  This means that you can essentially return to work soon after ceasing your employment, but you will still deemed to be retired and able to access your Super Benefit as required. The definition of retirement in this case is less stringent than for those under 60. 

 
 
Pension withdrawals when aged between 60 and 64 and NOT "Retired"

When you are aged between 60 and 64 and are NOT "Retired" you have the option of commencing a Pension Income Stream from your SMSF. A Pension simply means that periodically (eg each month or other period you nominate) cash is transferred from your SMSF Bank Account to your personal Bank Account to fund your living expenses. There are two types of Pensions you can start in an SMSF namely a “Simple Account Based Pension (SABP)” and a "Transition to Retirement Pension (TRAP)". When you are aged between 60 and 64 and are NOT "Retired" you can only commence a Transition to Retirement Pension.

If you do decide to commence a TRAP from your SMSF and are aged between 60 and 64 and are NOT "Retired", then you must take a Minimum Pension Income per year.  Further details about the Minimum Pension amount can be found in the Pension Section of our website here.  If you commence a TRAP from your SMSF and are aged between 60 and 64 and NOT "Retired", there is a maximum annual pension drawdown of 10%.  No tax is payable on Pension Withdrawals made after age 60.  Further details about commencing a Pension can be found here.

 
 
Lump Sum withdrawals when aged between 60 and 64 and NOT "Retired"

Lump Sum Withdrawals is simply an amount accessed from your SMSF that is not a Pension Payment.  You cannot make lump sum withdrawals from your SMSF when aged between 60 and 64 and NOT "Retired".

 
 
Not required to access Super Benefit when aged between 60 and 64 and NOT "Retired"

If you are aged between 60 and 64 and NOT "Retired" you are not required to access your Super Benefit as a TRAP.  The choice is entirely yours.  In fact you can let your Super Benefit accumulates in the super environment indefinitely.

 
 
Contributions when aged between 60 and 64 and NOT "Retired"

If you are aged between 60 and 64 and NOT "Retired" you can still contribute to superannuation (no work test is required).