In this guide
- Lump sum payments and tax implications?
- How do I take a lump sum?
- Can I withdraw a lump sum from my accumulation account in my SMSF?
- What are the options if all your super is in a pension?
- Strategy: Lump sum from a pension
- What happens when you have both accumulation and pension benefits?
- A super lump sum may affect your Age Pension
Accessing all your superannuation money at once can be tempting, especially if you want to pay off your home or go on a major holiday immediately after you retire. But if you do choose to take your super as a lump sum, there are rules and regulations you need to be aware of.
So, before you book those plane tickets, make sure you’re on top of what you can and can’t do.
Lump sum payments and tax implications?
The tax treatment of both lump sum payments and pension payments is essentially the same since the preservation age increased to age 60 from 1 July 2024.
- If you are 60 years of age or older and meet a condition of release with no cashing restriction, such as retiring from gainful employment or reaching age 65, any lump sum withdrawal from your self-managed super fund (SMSF) is tax free.
- If you are over age 60 and still working, you may be able to start a transition-to-retirement pension, but you would not usually be allowed to access a lump sum payment; you would need to wait until you meet a further condition of release.
Learn more about all the ways you can access your super.
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