Super Guide for your 50s

Superannuation is designed to finance your retirement so the Government has special rules about when you can access your super benefits, and the tax that applies to super benefits. Generally speaking, you cannot access super benefits before the age of 55. If you fall into one of the exceptions that enable you to access super benefits under the age of 55, then you can expect to pay a higher rate tax on those super benefits than if you waited until your turned 55, or waited until you turned 60.

If you are aged 50 or over, you are subject to a special contributions caps when making concessional (before-tax) contributions. Anyone in the 50-plus age group needs to be aware that as you get older, aged-based super rules come into effect. For example, you must satisfy a work test if you intend to make contributions after the age of 65, and you can't make any super contributions once you turn 75.


Turning 55 can be significant in the super world because it is the minimum age for accessing super benefits (assuming you have retired and born before a certain date). If you are 55-plus, you can also access your super when you haven't retired if you choose to start a transition-to-retirement-pension (TRIP). Although super benefits are not generally tax-free between the ages of 55 and 60, you can still take advantage of a tax-free threshold when taking a superannuation lump sum, and a 15% tax offset when taking a superannuation income stream (pension).

Set out below are all SuperGuide articles explaining Super Guide for your 50s.

SMSF basics: Can I run two super funds? (2 questions)

April 18, 2014
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1. Running two DIY super funds Q: My wife is 58 and retired and she has her own self-managed super fund, where she has rolled over her super funds from various employers. She plans to start her SMSF pension soon. After starting her pension, could she also start another SMSF fund? A person can … [Read more...]

Take note: Age Pension age increasing to 67 years

April 14, 2014
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Note: This article below explains the eligibility age for the Age Pension. For information on the retirement age for accessing superannuation benefits see SuperGuide articles Preservation age: I’m 58. Can I withdraw my super benefits? and I’m 60. Why can’t I access my super benefits? In late … [Read more...]

Retirement and tax: What are the minimum pension payment rules?

April 10, 2014
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Q: I am 63. I want to retire next year but I am not sure if I want to access my super benefits yet. I have heard that when I retire, I must withdraw some super benefits each year, otherwise I won’t receive tax-free super benefits. Can you please clarify the rules for me? A: You question is really … [Read more...]

Retiring before the age of 60: the tax deal

April 10, 2014
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If you retire before the age of 60, your super benefits are likely to be subject to tax — but not always. With the right structure, and usually with expert advice, many Australians retiring early can end up paying no tax. If you’re willing to wait until you turn 60 before you retire, you can … [Read more...]

Super for beginners, part 15: Super tax – as easy as 1-2-3

April 10, 2014
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Superannuation only exists because of how super savings are taxed. Superannuation savings receive tax incentives to encourage Australians to choose super as a retirement savings option. Even so, superannuation is still taxed (for most Australians) at a lower rate of tax than non-superannuation … [Read more...]

Tax-free super for over-60s, except for some

April 10, 2014
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If you withdraw your super benefits after you turn 60 years of age, you can expect to pay no tax on those super benefits, unless you are a member of certain public sector super funds (see summary table at the end of this article). Due to the number of emails I have received about this topic, I’ll … [Read more...]