Being smart with how you access your super can make a substantial difference in the long run.

You’ve worked hard all your life and have developed a sizable amount in superannuation, so it’s only natural to want to start diving into this hard-earned cash as soon as you can.

However, there are several options for accessing your super, and how you choose to use your super can affect other choices and may even affect your aged pension. Thus, before you dive into and withdraw a lump sum of money, it pays to look at your options to determine which is most beneficial from a long-term financial standpoint.

If you’re not sure how to access your super, or which option is right for you, Centaur Financial Services can help. We have a team of experienced financial advisors who can help you assess your situation and develop a plan that meets your individual needs and goals.

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Options for Getting Income from Super

There are three main ways to get income from super: super income streams, retirement, and the aged pension.

An Account-Based Pension is a super income stream that lets you receive a regular income from a super account held in your name. Just like a normal income, you receive regular payments from your super account. The remainder of your super continues to be investest as it always has.

There are two options for Account-Based Pension; Transition to Retirement (TTR) income for those not yet retired and a retirement income stream for those who have.

TTR is a Government strategy that allows people between the ages of 55 and 60 to draw down some of their super while still working. TTR has many benefits, including the ability to reduce your hours, increase your super, and increase your income. Be wary, though; drawing down on your super early will affect your retirement income, which may, in turn, affect your retirement goals.

You can access your super tax-free only when you retire and have reached your preservation age, which will vary between 55 and 60, based on the year you were born. Only then are you able to pay yourself a pension from your super (as explained above) or withdraw all of it as a lump sum.

Withdrawing all of your super as a lump sum can be beneficial if you want to be deft-free. However, once you take out the money from your super, you may not be able to put it back in if you change your mind.

If you have no super savings, you may still be eligible for the aged pension, which pays as much as $971.50 per single + eligible supplements or $1,464.60 + eligible supplements for couples combined. To receive the aged pension, you must pass two asset tests, the income and assets test.

Centaur Financial Services can help ensure you receive the maximum pension entitlements and Centrelink benefits you’re entitled to.

Learn more from our I Want to Plan for Aged Care goal page.

Learn more about drawing from your super on our Superannuation Planning page and find out which is the best option for you by arranging a free no-obligation consultation with our retirement experts.

Start Receiving Income From Super Today

If you’re unsure whether Account-Based Pension, retirement or aged pension is the right choice for you, turn to the financial advisors at Centaur Financial Services. We have a highly experienced team of superannuation experts who can review your circumstances and determine which option is the most beneficial for you and your future objectives.

Contact us today to learn more about how we can help you start receiving income from your super.