How Much Can I Withdraw at Preservation Age

as a frisky teenager at your debutton ball there were probably a few things you couldn't wait to grab these days you just want to get your hands on your super well your date back then may have been better looking than me but at least I can show you how to get hold of your super this video explains how much Super you can access once you attain the all-important preservation age including how to find out what your specific preservation age age is the different ways that you can access your super plus I'll also explain when tax on super withdrawals will and won't be taxable g'day I'm Cristiano the founder of super guy the place where Australians go to maximize their super and build their own retirement plan if you're finding value in my videos show your support by clicking the Subscribe button and giving this video a thumbs up okay let's get into showing you how much Super you can withdraw okay so you've reached your superannuation preservation age and you want to know how much Super you can withdraw and just so we're on the same page your superannuation preservation age is generally the first time that you can become eligible to access your super your preservation age is based on your month and year of birth as detailed in this table if you have reached your preservation age then congratulations you can access your super in some form or another but how much can you access well if you have reached your preservation age and are continuing to work you can usually only access your super in the form of a transition to retirement income stream otherwise known as a transition to retirement pension or TTR pension in practice the way that this works is that you would use some or all of your super accumulation balance to start a TTR pension which is a brand new account now many people will leave a small portion of their balance in the accumulation account so that any insurance is within within the account will not be canceled and also so that future employer contributions or even personal contributions can continue to be made into the account the account is enclosed a TTR pension allows you to receive an income of between four percent and ten percent of your TTR pension balance each Financial year so for example if you started the TTR pension with five hundred thousand dollars you can receive an income in the first year of between twenty thousand and fifty thousand dollars inclusive you might decide to use this income to supplement your work-related income if you say reduced to part-time work or you might use the additional income to repay debt or start a TTR strategy to reduce tax or a recontribution strategy to minimize potential death benefits tax there's plenty of reasons why you might start a TTR pension you do need to be mindful that though if you receive TTR pension income under age 60 the taxable portion will be taxed at your individual tax rate just like a wage would however you do receive a 15 tax offset um for the contributions tax already paid on the taxable portion of the income if you are age 60 or over TTR pension income will be received tax-free so that's the first way that you can access your super a TTR pension with income between four percent and 10 of your account balance the second way you can access your super and allows you to withdraw much more is if you satisfy the superannuation definition of retirement and there's two ways that you can satisfy this definition either you have reached your preservation age and are retired permanently with no intention of returning to full-time or part-time work ever again or you had an employment Arrangement come to an end on or after age 60. if either of these two conditions are met you are said to have met a full superannuation condition of release which provides you with unrestricted access to your super therefore you can withdraw as much as you like and this can be worth drawn as either a lump sum directly from your super accumulation account or by commencing an account based pension if you're aged 60 or over lump sum withdrawals and pension payments will be received tax free if you're under age 60 there may be tax on pension payments or Lump Lump Sum withdrawals so first pension payments pension payments under age 60 will be taxed in the same manner as TTR pension income the tax-free portion of the payment will be received tax-free and the taxable portion will be taxed at your marginal tax rate minus 15 tax offset for lump sums if you are under age 60 the taxable component portion of the lump sum withdrawal will be received tax free up to the lifetime low rate cap which is 235 000 for the 2023-24 financial year this is an indexed lifetime cap not an annual cap so be mindful of that and the tax-free component portion of the lump sum withdrawal is received tax free it does not count towards the lifetime low rate cap if your balance includes the uncommon untaxed component 15 tax will be deducted from this portion up to the untaxed plan cap of 1.705 million and then 45 for amounts over that as always you should consult your accountant regarding tax on any withdrawals from Super prior to making the withdrawal and that's about it so in summary if you have reached your preservation age and are still working you can access between four percent and ten percent by converting your super to a TTR pension but if you have reached your preservation age and have met one of the retirement conditions of release you can access your total super balance don't spend it all at once and stay super click that Thumbs Up Button if you found this video valuable and let me know what you'd like to see more of for even more superannuation tips head over to superguy.com.edu and sign up for my newsletter it's free and filled with valuable content thanks for watching I'll see you on the next one thank you

Channel: SuperGuy

Views: 20,006

Keywords: how much super can i withdraw at preservation age, superannuation preservation age, preservation age, superannuation, retirement planning, retirement, superguy, chris strano

Id: Kh336VuhWmw

Length: 6min 11sec (371 seconds)

Published: Sun Oct 08 2023