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How can I access my super in part-retirement?

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I have about $750,000 in a retail super fund and am close to part-retirement — age 59 — and I am thinking about setting up a self-managed super fund, so I can control my money. How can I access my super and still do a bit of work and maybe take some lump sums to pay off debt, have a holiday and give some gifts to loved ones?

Until you hit 59 the only way you will access your super without fully retiring is by transferring to a transition to retirement pension (TTRP). This means you have to withdraw three per cent minimum, going to four per cent next financial year and 10 per cent maximum. So you could draw out $75,000 a year but you won’t be able to take lump sums until you are 60. You can take a TTRP and still keep working full-time!

As you want to keep working part-time you could stay on TTRP until you hit 65 years of age.

On the other hand, you could fully retire, go onto a full pension but if you missed work you could go back to a job or start a business. Your new contributions would go into an accumulation account inside your super fund and your assets funding your pension would be segregated and the earnings would be tax-free.

For advice you can trust book a complimentary first appointment with Switzer Financial Services today.

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

Published on: Monday, March 05, 2012

The Switzer Super Report is a newsletter and website for self managed super funds. With exclusive commentary from Peter Switzer, Roger Montgomery, Paul Rickard and Charlie Aitken the Switzer Super Report will help you maximise your after tax investment returns and grow your DIY Super. Click here for a free trial or subscribe today.

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