Your retirement questions

Do I have to do something with my super when I retire? 

When you retire and have met a condition of release (for example you’ve retired and you’re at least age 60), you’ll have a few options to choose from:

• leave your money in your super account
• make withdrawals 
• open a Super Income Stream account (also known as an account-based pension) 
• a combination of the above.  

A Super Income Stream account keeps your money invested and working for you in retirement, and you get regular payments, like a wage. The big plus is that your income and investment returns are tax-free¹. And if something unexpected comes up, you can make extra withdrawals, just like a bank account. 

If you keep your money in your super account, your investment returns will still be taxed. 

I’m 67, single and about to retire with about $220,000 in super. Will I get the Age Pension? 

It may be possible, but your super balance alone doesn’t tell the full story. Centrelink looks at your complete financial position using what’s called the income and assets tests. 

There are different asset limits too, whether you’re a homeowner or non-homeowner. They count your super, but also funds in bank accounts, the value of your car and home contents (fire sale value). And, if you have other assets like investment properties, managed funds, shares, investment bonds, boats or caravans they would also be assessed as an asset as well.  

To get a clearer picture, try our Retirement income calculator, it shows how much Age Pension you could be eligible for. 

I’m 62, retired and getting income payments from my super, but I don’t need much. Can I take less than the minimum? 

The government sets a minimum amount you must withdraw each financial year, based on your age and account balance. Unfortunately, you can’t draw less than the minimum requirement. Because you’re under 65, the minimum drawdown rate is 4% of your balance. 

Given that you are under age 75, there may be scope to look at reinvesting the surplus either back into super or elsewhere.  This is an example where it’s important to get the right advice for you, so think about speaking to our Advice team.   

¹ Investment earnings while you’re a Fully Retired member are tax-free. Investment earnings are concessionally taxed at up to 15% while you’re a Transition to Retirement member. 

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