FAQ
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How much super do I need, how much will I have?
These are two of the most important questions in the lead-up to retirement. We can help you answer them.
How much super do I need for retirement?
The answer to this question depends on your personal situation, including what sort of retirement lifestyle you’d like and when you plan to finish work. We can help you work through these questions at a Retirement Health Check appointment.
The Association of Superannuation Funds of Australia (ASFA) also provides guidelines1 for people planning their retirement. The table below outlines the budgets required to fund a Comfortable or Modest retirement lifestyle.
Accessing your super at retirement
When it comes to retirement you can access your super:
- When you have reached 60 and are fully retired.
- If you are aged between 60 – 64 and still working you may have limited access to your super through Transition to Retirement (TTR).
- When you turn 65 regardless if you are working or not.
Options at retirement
When you are fully retired aged 60 or above you have three options when accessing your super:
1. Leave your super in your super account
If you don’t need the money straight away, you can just leave it in your current
superannuation account.
Benefits
- Your money continues to be invested
- You can still add money to your super up to the age of 75
- You can withdraw money when you need it
- You can change your investment options to suit your goals and appetite for risk.
Considerations
- Investment earnings are still taxed at 15%
The main benefit of keeping your super account open is you can add more to it during retirement. You cannot add more money into a Retirement Income account although there are strategies around this.
If you are aged 75 or older, you cannot open a new super account.
2. Open a Retirement Income account
Receive regular tax-free income payments in retirement Transferring your super to a Retirement Income account (also known as account-based
pension) means your money continues to be invested and can grow through investment returns.
You also get to choose how much and how often you receive your regular income payments. It’s flexible so you can make extra withdrawals when you need to.
There’s also a range of tax benefits, including tax-free investment returns and income payments if you are aged 60 and over.
You can change your investment options to suit your retirement goals and appetite for risk.
3. Take your super as a lump sum
Money in a bank account
Transferring your money into a bank account means you have easy access to your cash when you need it.
However, you lose tax benefits once you take your money out of the superannuation system.
You’ll no longer be able to grow your money from tax-free investment returns and you lose other potential tax advantages offered by a Retirement Income account.
Benefits of a Retirement Income account
When retiring, many First Super members choose to convert their super savings into a First Super Retirement Income account, allowing them to receive regular income payments during retirement. It’s a great way to ensure your super savings last as long as you do.
- Continue to earn investment returns on your money – Let our investment experts manage your money
- Choose when you receive regular payments – Fortnightly, monthly, quarterly, half-yearly or yearly payments
- Award-winning retirement product – Awarded SuperRatings Gold award for 2024
- Pay less tax – No tax on income payments1 or investment earnings
- Make lump sum withdrawals – Make additional withdrawals from your retirement account
- Peace of mind – A Retirement Income Account gives you flexibility and allows you to nominate beneficiaries
Early access to super
Under certain circumstances you may have early access to super before you retire.