Is that per year or until you reach 60+?
1 In 5 Australians: What Super is left by the age of 70?
- Thread starter Kristine..
- Start date
Is that per year or until you reach 60+?
If you're still working. Once you stop working (or if you turn 65) you can take as much as you want. As stated in an earlier post, you must meet a condition of release to access your super.
For most people, a condition of release is permanent retirement from the workforce or turning 65. If you are 65 and still working, you can access your super regardless.
Here is some basic info relating to when you can access and super and some stuff about TTR as well.
When you can access super
Transition to retirement
For most people, a condition of release is permanent retirement from the workforce or turning 65. If you are 65 and still working, you can access your super regardless.
Here is some basic info relating to when you can access and super and some stuff about TTR as well.
When you can access super
Transition to retirement
Absolutely correct.
If you were born after 1960, the preservation age (minimum age to access super) is 60 years old.
Discussion papers circulated within government are considering moving the age pension eligibility to 67 years old, and the thinking has been to align super preservation age to the age pension age, to (attempt to) prevent people playing silly buggers with loopholes.
The issue has gone quiet lately, but the issue that the government needs to address is working out who funds the retirement years, which have grown massively in average duration since the age pension was introduced. The idea originally was that most people would only get the age pension for a few years, not a couple of decades.
My fears for superannuation are:
1) Preservation age will keep being changed. As mentioned previously, there are even thoughts of pushing it out to 72 within the next 30 years or so.
2) Future governments will see some people who, over time, develop quite large super balances, and decide that taxing the super of 'the wealthy' would be a good revenue stream (e.g. first $1M of super gets favourable tax treatment, after that sliding scale to tax returns more heavily)
3) Cost of managing superannuation continues to grow. Many people are already cranky with super fee structures, even to the point of having a SMSF. Crackdowns on SMSFs mean higher audit and compliance costs.
Why I hate super currently:
1) At age 36, I have to contribute around 9% of my working income, which I would rather invest myself.
2) No leverage (at least not easily)
3) I am planning to retire earlier than when the government wants me to.
For someone like me, the tax advantages of super are outweighed by the many restrictions. In a few years I'll transfer all my super into a SMSF and start managing it myself, but it will never be more than a 'nice to have' component of my overall investing plans.
I definately will contact the fund, thanks.
( take into consideration I have snippets of info only, no solid knowledge)
BUT
From what I gather it's 10% per year, that doesn't make sense to me because in 10 years (age 65) there would be hardy anything left. (suppose over those 10 years tho you are still contributing your 9% - makes a difference)
Have absolutely no faith in super over the long run, government can change rules at any time.
.. edit As berlina said above, same hereI'm thinking it's worth thinking about withdrawing what's available and putting it to better use in our circumstances rather than sit for 10 years then be government allocated our own money !!
I'll check those links, thanks
The premise of TTR is that you draw down a portion of your super as an income stream (up to 10% of the balance) and make salary sacrifice contributions into your account (up to $50,000 p.a. including SG, depending on your age). Keep in mind that you only pay 15% tax on contributions (up to the concessional limit). By swapping employer income for super income and making contributions to super, if you are in a tax bracket in which you pay more than 15% tax, it is a good way to reduce your tax bill. Those people who pay 15% tax or less, it is pointless.
Here is a link to a good article relating to contributions caps:
Concessional contributions caps
Like I said, it's not for everyone, but it's a good strategy for some people. Good to have an additional weapon in the arsenal, so to speak. The site I linked to has a lot of really great info relating to super. When I found it, it was like discovering a gold mine and I refer to it a lot for work.
Here is a link to a good article relating to contributions caps:
Concessional contributions caps
Like I said, it's not for everyone, but it's a good strategy for some people. Good to have an additional weapon in the arsenal, so to speak. The site I linked to has a lot of really great info relating to super. When I found it, it was like discovering a gold mine and I refer to it a lot for work.
Thanks. You're fabulous
No worries! Happy to help.
Correct in extreme circumstances, you get options with lot of thing... Bank give you some time not having to make repayments in extreme cases... but I think everyone ele wa talkig about the limiaton of superannuation when not in extreme circumstances which is probalby the better way to plan / work out it's applicability to your invetment needs.
You can only get access to super at 55 if you ae not returning to the workforce later in life, you can't semi retire with it for example nd keep working a PAYG job
Kristine, what are you basing this statement on?
Sorry for going OT and 'extreme', and upsetting you jaycee
.My understanding is if you resign between 55 and 60 you can collect your super, but you can keep working on reduced hours (semi retire) you can collect some super as well - transition to retirement.
http://www.ato.gov.au/super/content.aspx?doc=/content/60489.htm&page=9&H9
Sorry for going OT and 'extreme', and upsetting you jaycee
My understanding is if you resign between 55 and 60 you can collect your super, but you can keep working on reduced hours (semi retire) you can collect some super as well - transition to retirement.
http://www.ato.gov.au/super/content.aspx?doc=/content/60489.htm&page=9&H9
Sorry I wasn't trying to be smart about it, but I didn;t know aobut the transition to retirement thing at the 55 yr old end of the scale...I thought that applied lcoser to the 65 year mark
wonder if I'll be smart enough between now and then to be able to use it when I turn 55....
As pointed out - you can only access your super at 55 if you were born before 30th June 2960.
Hubby sneaks in by 6 days! Thanks goodness.
Otherwise you have to wait for either 60 or 65 depending on when you were born.
I got carried away when weg told me the option exists - could have told me it was useless to me weg
Verrrrryyyyyyyyy weird.
Am I correct in saying theres a D.O.B cutoff date as to weather you will even be elighitable for the pension? I'm sure I heard this somewhere.. But I can imagine it will be changed once all these people start retiring and are flat broke within a couple of years and on the street.
I can imagine it wouldnt get to that
hasn't the pension age already been moved to 67 for those not that old? didn't krudd do that?
as long as you have non super means of retirement till you get to 72 and can then tap the super you will be fine. did anyone say 78?
that's the biggest risk of super imo. i tip in 25k pa because the tax is 15 rather than 45%. tax changes could happen quickly and aggressively, that's why i only stick to 25k pa not a huge amount to risk.
this has to get cheaper, surely? smsf is in it's infancy. once it is more established you would expect costs to decrease on par with a flat screen tv.
if you do it yourself you can decide how to invest.
you will think i'm a freak, but i think that is a good thing.
you can do so and once you reach the govts retirement age (85 by the time you retire) you can take advantage of their rules.
you might like to.. oh what the hell no one knows the future.
Age Pension eligibility
Yeah, pretty sure it was Big Kev. But it should have been done long ago. At least he had the moxie to front up and get it done. In my view, it should be pushed back to 70 and have far stricter restrictions placed on it.
why are we always trying to 'abuse the system'.
Superannuation is supposed to provide a rough 'safety nest', thats it (at least for most people).
Its really quite simple:
divide your superannuation by 20. This will provide a rough income figure that can be sustainably spent, no more no less. It should roughly cover inflation over time (ie over time it should leave enough funds that the income will grow over time, so long as roughly only 5% is withdrawn each year).
There should also be a nice amount left over for the kids.
Its once we start tinkering with it that things stuff up (such as taking out significantly more based on life expectancy etc).
Superannuation is supposed to provide a rough 'safety nest', thats it (at least for most people).
Its really quite simple:
divide your superannuation by 20. This will provide a rough income figure that can be sustainably spent, no more no less. It should roughly cover inflation over time (ie over time it should leave enough funds that the income will grow over time, so long as roughly only 5% is withdrawn each year).
There should also be a nice amount left over for the kids.
Its once we start tinkering with it that things stuff up (such as taking out significantly more based on life expectancy etc).
