This is a great site, all the information is acurate. All these other channels do not address the real situation. This site should have a 100 fold hits. Well done.
Great summary of what to do with superannuation. I’ll be 60 in October and only have $650k so need to work a little while longer. I’m happy to keep on working in my current role however, travelling is also appealing at my age. One thing I’ve noticed, the compound interest and $27,500 salary sacrifice make big steps in your balance. Who would have thought?
Great question. The answer is the same way as the employee - signing a legal declaration with the superannuation fund that you have had an employment arrangement come to an end.
@@SuperGuyAu Actually what I have found out is that if you have an ABN you need to cancel it. The reason is that if you have an active ABN then you are considered to be in business. I guess there is nothing stopping you from canceling your ABN, presenting the evidence to your Super and then reinstating it or getting another one. What a hassle...
I’d like it explained why a working single person who is no hope of getting to $650k super at pension age, should keep putting into super once they get to $300k? If you’re in the middle, why not just spend it all, because if you keep it you’re just going to see the govt reduce your pension?
One reason people continue contributing to super despite the reduction in Age Pension is because the reduction in your pension isn't dollar for dollar. Plus, investment earnings can increase the benefit of saving more, rather than spending it. Ultimately, there's pros and cons of each approach, so it's important to do whatever works for you.
A friend had a heart attack at over 60 but under pension age. Her super insurance stopped at 60, her super balance that she used, helped her keep her roof over her head for the year it took to recover instead of going out on the street.
I’ve had payments going in since the Super thing started and there’s no where near $500000 in it. I’ve also reached the age where I can access it but it’s not worth my time to do it. It’s total garbage and not something I’ll ever be able to get, my estate will never get it and there’s no one to leave it to.
Hi Chris, question is it possible to get all the money out the super account and move it to a normal savings account with the idea of taking it out of the country.? I would like to move overseas in a couple of years, the plan is to take that money and live off that without having to apply for pension in Oz, as this will require that work till 67 yrs of age, which I don't want to do, I want to retire at 65.
If you are eligible to access your super in full by satisfying the required condition of release, then you can do with your money as you please. However, I would strongly suggest obtaining personal financial advice before accessing your super to ensure your actions are aligned with your needs.
Chris great videos! 👍 After 60 you can apply for a TTR Pension as you explained for between 4 - 10% and if you had 500,000 then the max is 50,000 in the one financial year as you have explained, my question is if you are available to withdraw 50,000 can you get it in one lump sum?
You're welcome. The form in which you receive the income is dependant on the processes of each specific super fund. Many will allow it to be paid as a one-off lump sum, as you have stated, but they may make you wait until the end of the financial year. Generally, you will have the option of fortnightly, monthly, quarterly, semiannual or annual. Either way, you should ask your super fund what they offer.
I run a small business , are directors fees classed as " employed" ? In any case, my understanding is you can declare retirement and pretty much continue paid employment albeit after some kind of " reasonable period"...... ( ATO loves the word reasonable )
It all comes down to whether an employment arrangement (including self-employed) comes to an end. Relinquishing a director role, but continuing on with the same business in some capacity might not meet the definition of an arrangement coming to an end. Whereas a role with a different company probably would. This video can explain further czcams.com/video/LLg79UPlr1o/video.htmlsi=CsHRb-nuZaTE2wHb If you are still unusre, it would be best to get legal or financial advice.
Thanks for the clarity of advice. Much appreciated. What if you reach 60 & cease full time employment. & your intention changes because say you’re bored of retirement and jumped straight into a new job and or career with in the same financial year of retirement. Would your lump sum super withdrawal then be counted as income along with your earnings from your new job. & taxed combined? @ the end of the financial year? Thanks again for the advice. I’ve realised that everyone has different circumstances. So your videos are really helpful.
You're welcome. I'm glad you get value from the videos. Generally, your intentions can change, provided they were legitimate and genuine at the time of retirement. This video may explain more czcams.com/video/LLg79UPlr1o/video.htmlsi=5obEVPyR-vIOp5Jt A return to work under such circumstances does not impact the tax of the withdrawal.
Hi Michael, thanks! Yes, that's actually the primary intention of the Government's introduction of the TTR pension - to transition into retirement, by supplementing your work-related income with drawings from your super.
If you have switched to an account-based pension, and you later decide you need $600,000 to buy a retirement home instead of renting, can you withdraw that money from the account-based pension (assuming you have enough balance)? Or can you only get that amount of lump sum from the accumulation stream account?
The super fund you choose is largely irrelevant in my opinion. It's the investment option you choose to invest your super into that is important. In saying that, there are some super funds that have high fees. This video might help czcams.com/video/sEjQdi-IWw8/video.htmlsi=sNeacOyzgnWbkYdh
If you decide to meet a retirement definition during the financial year, does that then apply to the full financial year ending June 30 of that year? In other words, earnings earnt in say the first 6 months (before retirement) are also not taxed at 15%. So the full year is tax exempt of 15% on earnings?
Wow this is interesting. If working casually after a redundancy from full time last year at the age of 56 ( now 57 ) and only earning $20000 as a casual between now and 60. I could move some super to a TTR pension before 60 and take out $20k each year as TTR pension to top up. Would one only be taxed at 1% ( from July 1 2024 ) on that $20K top up? Am I understanding that correctly? I also wonder how the Co contribution would be effected if popping $1k after tax. Would they consider income as $20k or $40 K Thanks so much for this. It could make a big difference for the next few years.
The marginal tax rate is changing to 16% below $45k 1 July 2024, so... if I understand it correctly then there would 15% tax already paid when the super was originally contributed. By taking an addition $20k as a TTR prior to turning 60, the total accessible income is under $45K. The difference in tax to be paid is 1%. The same way franked shares are taxed? @@SuperGuyAu
I have reached preservation age and have 2 different super accounts. The first receives salary sacrifice and employer contributions while the second account contains only after tax contributions. Can I create a ttp account using only the second account and avoid the tax as it contains only after tax contributions and investment income.
Generally, you should be able to commence a TTR pension with only one of the accounts and, if it consists solely of tax-free components, then all income would be received tax free, even if you are under age 60. Is that what you mean? You should probably run this past your financial planner or accountant.
Generally, yes. But not always if there are untaxed components within your super account. Read more here superguy.com.au/superannuation/tax-on-super-withdrawals/
Hi Chris thanks for that info. May I ask you a question? I have two super accounts. One is a large mainstream the other is a WA Local Gov. each has approximately $120k in them. My preservation is late next year. I have been retired for more than 3 years and now live permanently in Germany. My questions are as follows. Would it be prudent to shift the Local Gov balance into the mainstream super mob who have consistently performed better. In doing so would it make the 4-10% pension calculations and process easier at preservation age. And as I would require $40k annually is this even doable given that the average annual returns have been around $9k per account after fees. Hope this finds you well and isn’t to scant information to be help. Thanks for any reply. Steve.
Hi Steve, I cannot comment on whether it would be prudent for you to consolidate into one fund or not, as there are a number of factors to consider outside of potential future returns. Having one super account can simplify your situation, but will not necessarily impact the calculation of a TTR pension, based on your combined balance. It sounds to me as though you need personal retirement planning advice if you would like to receive any solid answers. Here's a video that may assist with some of your questions in the meantime czcams.com/video/EGYS3OjrAmo/video.htmlsi=_vee9-zQKXAuTNfD
Preservation age has no bearing on mandatory withdrawals of super. The only time you need to satisfy minimum withdrawal requirements is if you use your super to commence an income stream. If you leave it in accumulation phase, there is no requirement to make withdrawals.
This is a great site, all the information is acurate.
All these other channels do not address the real situation.
This site should have a 100 fold hits.
Well done.
Thank you! Very kind words.
Ive subscribed, and Im sending your channel link to EVERYONE at work!. Incredible and precise information! You rock!
Thank you very much! Really appreciate the support. More to come.
Great summary of what to do with superannuation. I’ll be 60 in October and only have $650k so need to work a little while longer. I’m happy to keep on working in my current role however, travelling is also appealing at my age. One thing I’ve noticed, the compound interest and $27,500 salary sacrifice make big steps in your balance. Who would have thought?
Travel will be high on my priority list too!
Nice video. Would you consider making a video on withdraw and re contribution strategies to minimize tax for beneficiaries.
Maybe this one will help czcams.com/video/wXmc2Qlv_j0/video.htmlsi=eIaldDEUCZILdaSe
Can you go over smsf in properties ? How does it work at retirement phase ? Are we forced to sell to start income stream ? Any CGT when we sell ?
Question that no one seems to address. Age 60+ how does a sole trader/sole proprietor prove cease of emplyment?
Great question. The answer is the same way as the employee - signing a legal declaration with the superannuation fund that you have had an employment arrangement come to an end.
Yeah ! Precisely !
These rules are have been designed by Lex Luthor .
And this Jimmy Olsen just wants his own stuff ,
@@SuperGuyAu Actually what I have found out is that if you have an ABN you need to cancel it. The reason is that if you have an active ABN then you are considered to be in business. I guess there is nothing stopping you from canceling your ABN, presenting the evidence to your Super and then reinstating it or getting another one. What a hassle...
Question, whenever you retire after age 60, can you take a part-lump-sump payout then tranfer the balance to an Account based Pension?
I’d like it explained why a working single person who is no hope of getting to $650k super at pension age, should keep putting into super once they get to $300k? If you’re in the middle, why not just spend it all, because if you keep it you’re just going to see the govt reduce your pension?
One reason people continue contributing to super despite the reduction in Age Pension is because the reduction in your pension isn't dollar for dollar. Plus, investment earnings can increase the benefit of saving more, rather than spending it. Ultimately, there's pros and cons of each approach, so it's important to do whatever works for you.
A friend had a heart attack at over 60 but under pension age. Her super insurance stopped at 60, her super balance that she used, helped her keep her roof over her head for the year it took to recover instead of going out on the street.
I’ve had payments going in since the Super thing started and there’s no where near $500000 in it. I’ve also reached the age where I can access it but it’s not worth my time to do it. It’s total garbage and not something I’ll ever be able to get, my estate will never get it and there’s no one to leave it to.
Great opening line 😂👍
Tax free payment from TTR pension over 60 is 60 years old included, right?
Correct. Yes, sorry for my lack of clarity there.
Hi Chris, question is it possible to get all the money out the super account and move it to a normal savings account with the idea of taking it out of the country.? I would like to move overseas in a couple of years, the plan is to take that money and live off that without having to apply for pension in Oz, as this will require that work till 67 yrs of age, which I don't want to do, I want to retire at 65.
If you are eligible to access your super in full by satisfying the required condition of release, then you can do with your money as you please. However, I would strongly suggest obtaining personal financial advice before accessing your super to ensure your actions are aligned with your needs.
@@SuperGuyAuif you are over 60 and decide to move overseas, can you still access the aged pension once you hit 67 & still living overseas?
Chris great videos! 👍
After 60 you can apply for a TTR Pension as you explained for between 4 - 10% and if you had 500,000 then the max is 50,000 in the one financial year as you have explained, my question is if you are available to withdraw 50,000 can you get it in one lump sum?
You're welcome. The form in which you receive the income is dependant on the processes of each specific super fund. Many will allow it to be paid as a one-off lump sum, as you have stated, but they may make you wait until the end of the financial year. Generally, you will have the option of fortnightly, monthly, quarterly, semiannual or annual. Either way, you should ask your super fund what they offer.
I run a small business , are directors fees classed as " employed" ? In any case, my understanding is you can declare retirement and pretty much continue paid employment albeit after some kind of " reasonable period"...... ( ATO loves the word reasonable )
It all comes down to whether an employment arrangement (including self-employed) comes to an end. Relinquishing a director role, but continuing on with the same business in some capacity might not meet the definition of an arrangement coming to an end. Whereas a role with a different company probably would. This video can explain further czcams.com/video/LLg79UPlr1o/video.htmlsi=CsHRb-nuZaTE2wHb If you are still unusre, it would be best to get legal or financial advice.
Thanks for the insights. Under what circumstances can someone withdraw super under 60? I thought you couldn't.
Can I retire @60 , take out the entire amount of super & reinvest into my own share portfolio & start working again ?
You could, but I'm not sure that would be your best option for a number of reasons.
@@SuperGuyAu what are the reasons if you don’t mind ?
That intro😂
Thanks for the clarity of advice.
Much appreciated.
What if you reach 60 & cease full time employment.
& your intention changes because say you’re bored of retirement and jumped straight into a new job and or career with in the same financial year of retirement.
Would your lump sum super withdrawal then be counted as income along with your earnings from your new job.
& taxed combined? @ the end of the financial year?
Thanks again for the advice.
I’ve realised that everyone has different circumstances.
So your videos are really helpful.
You're welcome. I'm glad you get value from the videos. Generally, your intentions can change, provided they were legitimate and genuine at the time of retirement. This video may explain more czcams.com/video/LLg79UPlr1o/video.htmlsi=5obEVPyR-vIOp5Jt A return to work under such circumstances does not impact the tax of the withdrawal.
Can I draw my super to pay my home loan? I was born 31/12/1964
Hi mate, excellent vids. Can you convert a good %into a TTR and then still work a sole trader business part time to supplement my income?
Hi Michael, thanks! Yes, that's actually the primary intention of the Government's introduction of the TTR pension - to transition into retirement, by supplementing your work-related income with drawings from your super.
If you have switched to an account-based pension, and you later decide you need $600,000 to buy a retirement home instead of renting, can you withdraw that money from the account-based pension (assuming you have enough balance)? Or can you only get that amount of lump sum from the accumulation stream account?
An ordinary account based pension with no cashing restrictions allows you to withdraw the total balance at any time.
@@SuperGuyAu Thank you very much, I'll give my Super fund a ring - BTW, I love your content, so clearly explained 👍
Which super are you with mate? Should do a top 3/5 supers 👍
The super fund you choose is largely irrelevant in my opinion. It's the investment option you choose to invest your super into that is important. In saying that, there are some super funds that have high fees. This video might help czcams.com/video/sEjQdi-IWw8/video.htmlsi=sNeacOyzgnWbkYdh
If you decide to meet a retirement definition during the financial year, does that then apply to the full financial year ending June 30 of that year? In other words, earnings earnt in say the first 6 months (before retirement) are also not taxed at 15%. So the full year is tax exempt of 15% on earnings?
Tax-free earnings only apply to investment returns received in a retirement pension account.
Wow this is interesting. If working casually after a redundancy from full time last year at the age of 56 ( now 57 ) and only earning $20000 as a casual between now and 60. I could move some super to a TTR pension before 60 and take out $20k each year as TTR pension to top up. Would one only be taxed at 1% ( from July 1 2024 ) on that $20K top up? Am I understanding that correctly? I also wonder how the Co contribution would be effected if popping $1k after tax. Would they consider income as $20k or $40 K Thanks so much for this. It could make a big difference for the next few years.
Not sure why taxes at 1%, but yes still possible for co contribution
The marginal tax rate is changing to 16% below $45k 1 July 2024, so... if I understand it correctly then there would 15% tax already paid when the super was originally contributed. By taking an addition $20k as a TTR prior to turning 60, the total accessible income is under $45K. The difference in tax to be paid is 1%. The same way franked shares are taxed? @@SuperGuyAu
I have reached preservation age and have 2 different super accounts. The first receives salary sacrifice and employer contributions while the second account contains only after tax contributions. Can I create a ttp account using only the second account and avoid the tax as it contains only after tax contributions and investment income.
Generally, you should be able to commence a TTR pension with only one of the accounts and, if it consists solely of tax-free components, then all income would be received tax free, even if you are under age 60. Is that what you mean? You should probably run this past your financial planner or accountant.
If I am 60 or over and, do not work anymore. I can withdraw all amount from my super for tax free. Is that correct?
Generally, yes. But not always if there are untaxed components within your super account. Read more here superguy.com.au/superannuation/tax-on-super-withdrawals/
Thank you!@@SuperGuyAu
Also ,the government states that you HAVE TO leave $10,000 in your account always. so allow for that, i hope some one replys to this. Cheers .
Hi Chris thanks for that info. May I ask you a question? I have two super accounts. One is a large mainstream the other is a WA Local Gov. each has approximately $120k in them. My preservation is late next year. I have been retired for more than 3 years and now live permanently in Germany. My questions are as follows. Would it be prudent to shift the Local Gov balance into the mainstream super mob who have consistently performed better. In doing so would it make the 4-10% pension calculations and process easier at preservation age. And as I would require $40k annually is this even doable given that the average annual returns have been around $9k per account after fees. Hope this finds you well and isn’t to scant information to be help. Thanks for any reply. Steve.
Hi Steve, I cannot comment on whether it would be prudent for you to consolidate into one fund or not, as there are a number of factors to consider outside of potential future returns. Having one super account can simplify your situation, but will not necessarily impact the calculation of a TTR pension, based on your combined balance. It sounds to me as though you need personal retirement planning advice if you would like to receive any solid answers. Here's a video that may assist with some of your questions in the meantime czcams.com/video/EGYS3OjrAmo/video.htmlsi=_vee9-zQKXAuTNfD
@@SuperGuyAu thanks Chris very clear and assisted me a lot. Appreciate your time in getting back to me. Regards Steve.
Once we reach PA, are we forced to withdraw 4% minimum annually?
Preservation age has no bearing on mandatory withdrawals of super. The only time you need to satisfy minimum withdrawal requirements is if you use your super to commence an income stream. If you leave it in accumulation phase, there is no requirement to make withdrawals.
Hi Chris,
Does this mean that by 01/07/2024 everyones preservation age will effectively be 60 from now on?
Yes, and it will keep going up. By the time I (25) am able to access my super it'll be around 75
Yes, this is correct.
Haha.. possibly! But that'll probably be because you will have a life expectancy of 130.
Classic intro.
Thanks!
can i edit your videos?