Q: I am 57. If I decided to retire before 60 when can I access my super? A: If you have reached your preservation age AND retire, then you can access your super benefits. ... Read more
How super works
A Super Guide
Your superannuation account exists only because you, your employer or someone else makes regular cash contributions to your super fund. A superannuation fund is an investment vehicle that receives special tax concessions from the federal government. The cash that is held in your superannuation account is then invested in assets to generate returns for your eventual retirement. On retirement, you can choose to take a regular income stream (super pension) from your super account.
Apart from the return on your super investments, and the costs or fees your super fund charges against your super account, a healthy superannuation payout on retirement depends on the amount your employer (or you) contributes to your fund throughout your working life. Your super life starts when you join (or your employer joins you, on your behalf) a superannuation fund.
When you understand the basics, you can forge a strong financial future for yourself through superannuation. A weekly, monthly or quarterly contribution to a super fund can provide you with multiple investment choices and tax breaks, and insurance protection if you become disabled before you retire. You can considerably boost your final superannuation benefit by making your own contributions to your fund. You may also have the flexibility to structure your contributions in a way to reduce the amount of income tax that you pay.
In this section you can discover the mechanics of the superannuation system, including the latest super rates and thresholds, a suite of articles designed especially for super for beginners, the compulsory employer super contributions rules, resources on what to consider when comparing super funds, how-to super guides, and helpful retirement reckoners. Click on the links directly below to access the following topics about how super works:
- Latest super and retirement changes
- Super for beginners
- Super rates and thresholds
- Superannuation strategies
- Superannuation Guarantee rules
- Comparing super funds
- How-to Super Guides
- Superannuation Q&As
- Super Quizzes
Below are some of our key How super works articles:
Set out below are all SuperGuide articles referring to How super works.
I’m 60. Why can’t I access my super benefits?
Q: My husband just turned 60 years of age, and he has $80,000 in his super fund. We would like to withdraw his entire super as we need the funds to purchase a house. He is currently employed full-time and will be working for many years yet. We have sent the super fund all the documents to receive the funds, but they ... Read more
Turning 65 and super: A Super Guide
Anyone aged 65 or over can access super benefits without retiring or satisfying any other special condition of release. Turning 65 is a condition of release. Unless you’re in a public sector fund, such super benefits will be tax-free when paid on or after the age of 60. For a general summary of the super and ... Read more
Accessing super: What does ‘retirement’ mean so I can withdraw my super?
‘Retired’ or ‘retirement’ for the purposes of accessing super benefits means the trustees of the individual’s super fund are reasonably satisfied that the person intends never to again become gainfully employed, either on a full-time or a part-time basis. Note that ‘part-time’ is defined as working up to 30 hours a ... Read more
Unrestricted access to super, sometimes
Q: I have been a member of my super fund from about 1993. I see from your 14 legal ways to withdraw your super benefits article, that I may be able to access my restricted benefit. You write: “If you’ve been a member of a super fund since before 1 July 1999, you can cash your ‘restricted non-preserved benefit’ (certain ... Read more
What is the retirement age in Australia?
In Australia, there is no official retirement age but there are special rules that apply, which determine the age when you can withdraw your superannuation benefits (preservation age), and the age when you can claim the Age Pension (Age Pension age). You can discover your preservation age (for accessing your super ... Read more
Retirement planning in six steps
How much money do you need in retirement to live a lifestyle free of everyday money worries? For many Australians, this means a lifestyle where you can pay your bills without financial stress, you can enjoy an occasional holiday (or many!), you can maintain your car and house, and you can buy gifts for your children, ... Read more
If I retire at 59, will I pay tax on my superannuation benefits?
Q: I retired in October 2018. I now live on a tiny super pension of about $900 a fortnight. In October 2018, I also received a $15,000 superannuation lump sum. The tax-free component of my total superannuation is 66% and the taxable component is 34%. I turn 60 in February 2019. Do I have to pay any tax on the lump sum, ... Read more
Age 65: Accessing your super is a right
Q: I am female and I will be 66 in a few weeks. My personal savings of $60,000 were used to pay for my husband’s funeral expenses, and to repay the balance of my mortgage. I need urgent dental, optical treatment and due to the lack of savings, I have not been able to get this medical treatment for three years. I ... Read more
Contributions caps frozen for 2018/2019 year
On 1 July 2017, the general concessional contributions cap dropped from $30,000 to $25,000 and the special cap for older Australians ($35,000) was abolished. Since 1 July 2018 (from 1 July until 30 June 2019), for the 2018/2019 year, the annual concessional contributions cap remains at $25,000, rather than ... Read more
Financial advice: Only 124 independent financial advisers in Australia
Note: This article is updated regularly when new financial advisers join the independence club (latest update November 2018). A financial adviser does not have to be a member of the IFAAA to join the SuperGuide list, provided they can declare that they satisfy the requirements of being an independent adviser (we now ... Read more
Retirement planning: Choosing the right super strategies for your age
A superannuation fund is an investment vehicle, rather than an investment. Many fund members, journalists and even investment analysts are confused about this distinction. For example, asking whether property or super is the better investment is the wrong question. The right question to ask, is whether the tax savings ... Read more
