Aged Over 65

Accessing your Super Benefit when aged over 65

Once you reach age 65, you can access your Super Benefit at any time whether you have retired or not. There are absolutely no restrictions to accessing your Super Benefit when over 65. Your Super Benefit can be accessed as either a Pension or Lump Sum withdrawal.

Pension withdrawals when aged over 65

When you reach age 65 you have the option of commencing a Pension Income Stream from your SMSF. A Pension 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" and a "Transition to Retirement Pension". When you are over 65 you can only commence a Simple Account Based Pension.

If you do decide to commence a Simple Account Based Pension from your SMSF and are aged over 65, then you must take a minimum pension income per year. For more information on the minimum pension amount, please click here. There is no maximum pension amount if you are aged over 65 and you are free to access all your Super Benefit as desired. No tax is payable on Pension withdrawals made after 65. For more information on commencing a Pension, please click here.

Lump Sum withdrawals when aged over 65

The alternative way to access your Super Benefit when you reach age 65 is as a Lump Sum withdrawal. A Lump Sum withdrawal is an amount accessed from your SMSF that is not a Pension payment. You can make Lump Sum withdrawals whenever you like from your SMSF once you turn 65. There is no maximum Lump Sum amount if you are aged over 65 and you are free to access all your Super Benefit as desired. No tax is payable on Lump Sum withdrawals made after 65.

Can I choose the withdrawal types?

If you have NOT commenced a Pension from your SMSF all withdrawals made from your SMSF will be treated as a Lump Sum withdrawal when aged over 65. Alternatively, if you have commenced a Pension from your SMSF, you have the choice to make either Pension or Lump Sum withdrawal in addition to the annual minimum pension amount, which must be made as Pension withdrawals.

We caution that Pension withdrawals and Lump Sum withdrawals are two different withdrawal types and different rules apply. For more information on the difference between Pension withdrawals and Lump Sum withdrawals, please click here.

Not required to access Super Benefit when aged over 65

If you are aged over 65 you are not required to access your Super Benefit as either a Pension or a Lump Sum withdrawal. The choice is entirely yours. In fact you can let your Super Benefit accumulates in the SMSF environment indefinitely. If you access your Super Benefit after age 65 as a Simple Account Based Pension (SABP), you never pay tax on the investment income and capital gains in the SABP account. However the amount of superannuation benefits that you can use to commence an SABP is limited by the Transfer Balance Cap. For more information on Transfer Balance Cap, please click here. Similarly any monies you access as a Pension will be tax free also after age 60.

Contributions when aged over 65

If you are aged over 65, contributions to superannuation (assuming you satisfy the relevant eligibility), are not preserved and can be immediately withdrawn as a Lump Sum or Pension (if you have commenced an additional SABP using the contribution amount) at any time following the contribution.

General Advice Warning

No Advice Express or Implied: The contents of this website are of a general nature only and have not been prepared to take into account any particular investor's objectives, financial situation or particular needs. ESUPERFUND does not provide financial product advice or recommend any financial products either expressly or implied. ESUPERFUND expressly states that it does not recommend, represent as suitable, or endorse any financial product or service available through ESUPERFUND. This applies equally to those financial products which are established for your SMSF when you become a client of ESUPERFUND. Any information provided in relation to any financial product or service available through ESUPERFUND is factual information only about the operation of the account and how data is made available to ESUPERFUND. Where this website refers to a particular financial product then you should obtain a Product Disclosure Statement (PDS) relating to that product and consider the PDS before making any decision about whether to acquire the product. We also recommend that you should seek professional advice (see below) from a financial adviser before making any decision to purchase any financial product referred to on this website. While the sources for the material are considered reliable, responsibility is not accepted for any inaccuracies, errors or omissions.

Seek Professional Advice from a Financial Adviser: ESUPERFUND is a no advice model and does not provide financial, legal or tax advice to clients. We recommend that you seek appropriate professional advice in view of your personal circumstances. A licensed financial adviser will consider your personal situation and make a recommendation suitable to your financial needs. All information detailed on our website is purely factual and is general in nature. Accordingly, you should not rely on it. It should always be remembered that Trustees are legally responsible for all the decisions made even if you obtain advice from a Financial Planner. Whilst a Financial Professional can provide advice and assistance you are ultimately responsible for the Fund.

Fees: Fees relating to operating your SMSF with ESUPERFUND are detailed on our fee page here. When setting up a SMSF it is important to understand that additional fees may apply that must be carefully considered prior to making a decision to setup a SMSF including an ATO Supervisory Levy, Company Trustee Setup Fee (where applicable), and Investment Fees.