Q: I have just retired at the age of 60, mainly to access my Super returns tax free. Do I also have to start a pension, or can I delay that a few years, so I don’t have to start withdrawing the minimum 4% annually?
A: I have pretty short answer for you here, Brent. Number one, if you retire after 60, you can access your super. Your money becomes unrestricted, not preserved. It allows you to access those monies. It does not compel you to. You are not at all required to access those monies.
They can remain in your accumulation account for as long as you like. The earnings on those accumulation balances will be taxed in the fund, but there is nothing at all to stop you from leaving them there. There used to be some things called the compulsory cashing rules, which said that at a certain date, you have to take money out. Those rules went, they were removed, many years ago, so you can retire and leave your money in the accumulation phase.
For completeness, the only compulsory cashing event that remains in legislation today is when a member dies. When a member dies, you have to deal with their benefits.
But Brent, turning 60 and retiring does not require you to access your super. You can leave it in accumulation phase for as long as you like.
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