When you retire early, you’re going to have to make a few decisions. The tax implications of your retiring before the age of 60 can depend on whether you take your super as a lump sum and/or pension.
Are you taking your super as a lump sum, a super pension (also known as a super income stream) or a combination of both?
Note: Remember that you must also satisfy a condition of release to access your super benefits before the age of 60, and more generally, to access your super benefits before the age of 65. A condition of release includes retiring after reaching your preservation age; or taking a transition-to-retirement pension (gives you access to up to 10% of your super benefits each year); or suffering a permanent disability, to name a few. (For more information on the conditions of release, see SuperGuide article Accessing super early: 14 legal ways to withdraw your super benefits.)