Can You Return to Work After Retiring & Accessing Your Super? [2024]

[@kidoctane]

Interesting... I retired late last year, just before turning 63 and started my Super pension. I still do some casual work for my former employer, mainly working on my legacy projects. So far that casual work averages about 5-10 hours a week on those weeks when I am not travelling, which suits me fine. However there are a few potential projects on the horizon that may require some full time attention, albeit for limited periods of time.......say 3-4 weeks. My question is - "is that 10 hour per week condition a strict condition applied to every week or is it averaged over a period of time ? If I take into my non working weeks I am averaging less than 5 hours per week since retiring. Great channel, by the way. A bit unfortunate I discovered after retiring, but good to hear solid validations of my understanding of how super works. I have pointed this channel out to some of my peers who are currently contemplating retiring.

[@captainmort]

Just found your channel. I have recently retired and really appreciate the easy to understand and thorough detail that you have supplied on this matter. It gives me many choices going forward.

[@Michael_Mears]

I like the #2 definition. Quit the job, notify the super mob, grab the bag of cash, then go looking for another job. Contributions from then are preserved, but I can live with that.

[@SuperGuyAu]

It's as simple as that! ... provided you are 60 or over when you quit the job. Also, grabbing the bag of cash all at once isn't always the best course of action. Many people leave it inside super as 'unrestricted non-preserved' components (or use it to start an income stream) - meaning they can still access it any time and it can remain invested.

[@ivanfisher9301]

@@SuperGuyAu so if I clean out my super , but then return to work a few years later , will this reset all the thresholds ? eg super balance

[@robertdianeowen2504]

Thanks for the info. Really clear and help me make a decision. Would love more information on super income streams -benefits and pitfalls.

[@SuperGuyAu]

No problem Robert and Diane. I'm pleased you enjoyed it. New videos will be released here every week or two across a range of superannuation topics. In the meantime, you might consider the SuperGuyHUB which has plenty of videos and info on income streams and retirement planning strategies. Check it out at this address superguyhub.com.au/

[@annhoward2159]

Love the advice

[@iwasfixin2b]

So very much appreciate this channel. Really appreciate this video in particular.

[@SuperGuyAu]

You're welcome. Thank you for taking the time to comment. It means a lot.

[@LukeCollins80]

Love your videos. Have recommended to many people. Simple straight forward advice! I have a finance background and your explanations are straightforward and easy to understand. Well done and goodluck with the channel

[@SuperGuyAu]

Thanks! Appreciate it.

[@howardiknow1133]

My plan, get out of the same game ive been playing for what will be 40yrs in 18 months...then kick back, travel a bit....and maybe do a bit of self employed stuff at my leisure....thanks for the info about the working after the super day...

[@ingridmccarthy0707]

Great video - it's so confusing and you made it really clear.

[@SuperGuyAu]

Glad to hear! Thanks for taking the time to comment.

[@Perfection212]

Any person shoul have access to their SUPER whenever they have the need to and not wait for financial hardships bullshit or the ripe age that you will be nearing to be dump in the nursing home.Release the SUPER as early as it should because we work hard for it.That is our money!Let us enjoy it!

[@SuperGuyAu]

An argument could be made that super should not exist at all and employees simply receive potentially higher wages. The counter to that is that most people would not save enough for retirement and rely more on the Age Pension, meaning income taxes would be higher and we'd all be a worse position.

[@MademoiselleRose40]

The whole reason super was set up was so the government can eventually cut down on paying pensions because they've calculated they won't be able to afford it in the future with so many old people and not enough young people working to pay for the olds' pensions. If you spend it before retirement, then it defeats the purpose of it in the first place and it wouldn't exist. It isn't meant to be a slush fund for you to dable in your whole life then have nothing when you retire and the government has to pay for you to live, which they won't be able to afford. You're forgetting the employer pays a huge chunk of it and they aren't there to fund your lifestyle BEFORE you retire. You're lucky it exists because by the time you're old there may not be an old age pension and you'd be living on the streets eating out of garbage bins.

[@cececece5459]

Thank you. So well explained.

[@SuperGuyAu]

Glad you liked it

[@sjj7236]

I had no idea, this is helpful. Thanks

[@SuperGuyAu]

Glad it was helpful!

[@user-mw4go7ez9t]

If you left an employer at 60 and took up your super, then a year or so later returned to work with the same employer would this be a breach of the test.

[@matthewlovat4521]

To add a twist to this question - what if you returned to work with the same employer but in a different role?

[@Bluemusic66]

Only if you had an arrangement to return. But it could be risky. For example if the Employer advertised a 12 month contract for the role you did and miraculously you took up the job 12 months later it might raise alarms. But it’s doubtful that they would have the means or inclination to investigate. And if your employment came to an end (which it did) and there is no evidence that your employer had an arrangement for you to return they’d be hard pressed to rule against you.

[@user-mw4go7ez9t]

@@Bluemusic66 Good point, thankyou.

[@Enthusiasmisgood]

Really clear. Great explanation. Thank you.

[@SuperGuyAu]

You're welcome! Thanks for letting me know you enjoyed it.

[@maximaphily601]

Great simple video. What it did not mention however, was: Regardless of the "retirement definition". If you have met that definition, then there should no longer be any taxation at 15% by ATO of the earnings to that point in time. If you start another job in the future (so the future contributions are not able to be accessed but preserved until another retirement definition), how are those contributions, and earnings on those contributions, taxed by the ATO? I assume ethe employer contriubtions would be taxed at 15%? But what about the earnings on investments? How are they taxed by ATO? Unless you had a separate invetment strategy for the future preserved amounts you could not easily identify what those earnings were. Thanks for any help on that one!

[@SuperGuyAu]

A common misconception is that all superannuation investment earnings are tax-free once you have either retired or attained age 60. This is not the case - 15% tax will continue to be paid on investment earnings even if you meet a retirement definition. What's important is whether you're in pension phase or accumulation phase. You can learn more here superguy.com.au/superannuation/tax-on-superannuation-earnings-after-60/

[@maximaphily601]

@@SuperGuyAu Hello and thanks for the reply. I had already read that link you gave to me - in fact that is where I found your KZbin channel from that page! The page is somewhat confusing then, or I would not have asked the question. Let's just assume over 65 to make things easy. The page says: "If you do decide to commence an account-based pension, all investment earnings including capital gains within the account will be received completely tax-free, regardless of your age." Does that comment therefore mean you have to put 100% of your super into an account-based pension (where it has 0% tax on any earnings made on the investments for that pension) to avoid paying any 15% tax on future earnings. That is the missing link for me in understanding. If you only put half your super into a pension plan, does that mean the other half continues to be taxed at 15% earnings. That "other half" is still in "accumulation" phase, even though the "accumulation" is only earnings on investments. That was not discussed on the page. I read the page that if you commence an account-based pension on "retirement" it meant 0% tax on all your super from that point. Regardless of how much you move into the pension investment and how much you keep in the accumulation part (for future possible lump sum payments). The video on that page was the very first of your videos I did watch. But it leaves me with the same question. The KZbin video says: " once you convert your super to pension phase when you retire and start a retirement income stream your balance remains invested and *ALL* income derived from investments are received completely tax-free so too are capital gains this means that you pay absolutely no tax on any investment earnings so you get the tax benefits for contributing to super and you get the tax concessions on investment earnings within super this incentivizes you to contribute to super while you are working then in order to encourage you to keep your retirement savings inside super *_once you do retire_* *ALL* investment earnings are tax-free You see how that can be confused, as there was no discussion about or assumptions made on how much of your super investment did you place into the "pension". The video (and web page) merely say "once you convert super to pension phase and start an income stream". You don't need to use all your super balance to start such an income stream. So it is a partial structure I was looking for, but I could find nothing on all the videos thus far watched, that cover this topic. Thanks again. As in the response to this message, you said "What's important is whether you're in pension phase or accumulation phase". Again that can be confusing. I think (correct me if I am wrong) what you are syaing is that you can be *BOTH* in pension phase and accumlation phase at the same time, and only the pension investments are those that are tax free. The actual commencement of retiring and taking a pension, does not then translated to "all super" being tax free, as the video does seem to suggest (for those of us not educated on the topic!).

[@SuperGuyAu]

Apologies for any confusion. Yes, you can have both an accumulation account and pension account, but only earnings within the pension account (excluding TTR pension accounts) are received tax free. This article may help superguy.com.au/superannuation/superannuation-income-stream

[@user-yn4ni8km2t]

The only thing about going back to work is either self employed or though a member of your family. Stop kidding yourself and others about getting a job. Young managers will find an excuse not to employ people over the age of retirement.

[@jonahtwhale1779]

Work place insurance for older workers is much higher than for younger workers. So there are 8ncentoves that are legal. Of course agism is all too common too!

[@karenschelbach4092]

Very helpful thank you

[@SuperGuyAu]

Glad it was helpful!

[@kevinquinn7645]

Assume you're over the age of 60, meet the second definition, start a new part-time role, if access $330k of your Super and make a corresponding non-concessional contribution under the bring forward rule, would that contribution be preserved?

[@SuperGuyAu]

Excellent question. My interpretation of the rule is that it would be preserved. All contributions subsequent to meeting the condition of release will be preserved until another condition of release is met.

[@1Coolbanana]

Thank you, was wondering this myself. Question, is the 10 hours a week on a PA basis, eg, could you work a 40 hour week once a month? Not exceeding 10 hours per week total for a year?

[@sherileeraftery4874]

Thank you for that video, I have learnt so much from all your information. My Husband (61) was a fitness Instructor (contractor) for his 2nd job, he left that in December but went back to cover a heap of classes in August to help out a busy Instructor so she could have a break. How do we prove he is no longer working to access his super or is that question for our Accountant?

[@SuperGuyAu]

Generally, you would need to notify your superannuation fund as soon as possible after the employment arrangement has ceased. My concern is that we are in a new tax year, plus he has returned to work and we are 12 months on from when the employment arrangement came to an end. It would be best to discuss with your super fund how this situation would be interpreted.

[@petkuscinta9797]

Fantastic know how this particular one. Especially second definition of retirement. Question: Would I be able to meet second definition if I am 60 and I terminate working for corporation but start earning money using my already existing business strcuture that is in hybernation not doing much at all? Or the fact my business structure already exists now (at 58) not having cashflow and on simplified tax reporting is an issue? Would I have to go through pain of cancelling my business current structure and create one post receiving super post resignation?

[@SuperGuyAu]

The definition is satisfied provided at least one employment arrangement comes to an end.

[@Woodland26]

sounds too contorted for my circumstance. I would rather use transition to retirement after turning 60 and get my 4% per year plus reduced hours of work. The good thing about the TTR account is it is not subject to the cap of 1.9m (as in July 23). Yes the fund will continue to pay tax on its earning but that's all fair to pay some tax.

[@SuperGuyAu]

Fair enough.

[@luvlyf2ful11]

Thank you for such welcomed information. Question, is this video from 2 years ago still current in 2024 or have rules/conditions changed since?

[@SuperGuyAu]

You're welcome. The rules are still correct as at today.

[@chrisl759]

Chris - your videos are extremely helpful. I am struggling though to find a full explanation anywhere of the conditions specific to “employment arrangement come to an end”. Are there any links to rules that you can suggest? Is it ever possible to resume some casual work with your employer? Is it 12 months, permanent etc? How long must you have been with the employer to then use definition 2?

[@dianaliston7091]

How would definition 2 work if you have a self-managed super fund. Whom would you need to notify if you ended your job with the first company and moved to a part time basis with the second?

[@SuperGuyAu]

This would need to be documented with the trustee of your SMSF and retained on file by the administrator. I would speak with your SMSF accountant/administrator regarding this.

[@Gladius000]

What if I stop employment before 60 (planning to stop working at 55)? Can I then access super at 60? Otherwise, it looks like I would have to find a job at 60, work for a bit and then quit, right? Silly that I have to jump through those hoops as it is not very different from the second definition.

[@SuperGuyAu]

You can stop work at 55 and access super at 60 (under current rules) provided you never intend on working full-time or part-time ever again.

[@mrfseducationchannel5893]

Hi, you mention preservation age as 65. Is it 67 now?

[@brucetownsend691]

The preservation age is not 67: I believe 67 is now the age at which one can get the aged pension subject to the various means tests. The preservation ages is the age at which one can access super. There is usually a substantial gap between those two ages.

[@michaelclement1337]

I thought retirement where you can do what you want was 67. Got that wrong

[@Wayne-wq4iv]

Great information Chris. It is so difficult to find the correct information. What happens if you are working on a casual basis after having terminated part-time with the same employer BEFORE the age of 60 (59+). Does this affect access to lump sum super at 60 because you are still employed as casual, even though it is less than 10 hours per week?

[@SuperGuyAu]

If before age 60, you can only have full access to super if you have attained your preservation age and are retired with no intention of returning to work ever again. Casual work of less than 10 hours per week will not impact this - however subsequent contributions will not be accessible until you retire again or attain age 65. This video may help kzbin.info/www/bejne/qXbOf3uYnqaDiLc&t

[@leroyybrown]

I’m beginning to see many loopholes in Super….which isn’t a bad thing

[@T-tx3vj]

Great Videos, thanks. How is the 10 hours per week calculated to meet the condition? Can some weeks you go over 10 hours and other weeks under 10 hours to get an average. Eg If it was averaged over 4 weeks then, w1 15 hours, w2 3 hours, w3 6 hours w4 12 hours. 36 hours/4 = 9 hrs/wk. If averaged what is the period?

[@SuperGuyAu]

Hi Tony, great question. The 10 hours is calculated on a week by week basis, not on an average.

[@user-gq4fs2io8h]

I am 66, on an income stream, and just applied for Pension..i have never officially retired, and want to do some casual work...how many hours can i work and/or how much can i earn before it affects my Pension ?

[@SuperGuyAu]

Excellent question. This article may help explain how much you can earn before it affects the pension superguy.com.au/retirement/how-much-can-a-pensioner-earn-before-it-affects-the-pension/

[@mansphotography9102]

What after retiring at 67, start to drive Uber 50 hours a week?

[@AI_admin]

Hi Chris, what about reaching Preservation Age, or Turning 60 and either being unemployed or on DSP?

[@billk9856]

Chris I'm 63. I resigned form my only employer and took other work. Because my employer had difficulty replacing me I covered my old position while commencing two new part-time positions. My previous employer had so much difficulty replacing me they offered me a new full-time contract on improved conditions. I accepted the new conditions with my old employer ( I was never finalised as I was still covering my position) and resigned the part-time position I accepted when I thought I was leaving. I've been back full-time with my original employer now for 10 months .... can I access my super?

[@dentray]

Thanks that easily answered my question! can I retire at 61 access my supa and then work for the same company part time. Bur what if my arrangement ceases but I begin work with that same company say 3 or 6 month later?

[@SuperGuyAu]

My understanding is that a condition of release is satisfied if the arrangement genuinely came to an end, with no understanding or agreement that the employee ceasing the arrangement would be returning at some time in the future.

[@GalaxyCat001]

If you quit your job after turning age 60 to met the condition to access super & then start a new job & pay the super contributions from that new job to the same super account as the old job used, can you still access all your super in that account?

[@SuperGuyAu]

Yes, provided you told the super fund immediately after meeting the condition of release. Your balance at that date will become unrestricted non-preserved. All subsequent contributions from the new employer, plus associated earnings, will remain inaccessible until another condition of release is met.

[@ivanfisher9301]

"Over age 60" so is 60 yrs + 1month ok ? Or is it 61+ ? Shits me when bureaucrats make rules that are ambiguous , so if 60 + 1 month is ok , then why not say age 60 and above ? If 60 + 1 month is not ok then then its not " Over age 60 " its age 61 and above . Does my head in

[@SuperGuyAu]

Sorry, this is my poor terminology. I should say 60 and over. My apologies.

[@ivanfisher9301]

@@SuperGuyAuno probs , that’s cleared it up for me 👍

[@tag21au]

With definition #2, can your age be 60 or do you have to be “over 60” … as in 61 or older?

[@SuperGuyAu]

The rule is age 60 or over.

[@tag21au]

@@SuperGuyAuThankyou for responding to my question posed so long after your original upload, much appreciated.

[@imanenigma3348]

I'm guessing if I work at two different schools for the NSW dept of Education, on a permanent/part time basis, leaving one of the schools and remaining at the other, does NOT meet the requirements of definition#2? Also, are we not allowed to pull $200k Approx from our super, tax free, if we have met preservation age and are below 60yo?

[@SuperGuyAu]

1. I don't believe this would meet the requirement, because your employment arrangement with NSWed doesn't cease. 2. To make a lump sum withdrawal you first need to meet a full condition of release to have access. You cannot access a lump sum if you have not met a full condition of release. If you have, the taxable portion of the withdrawal can be withdrawn tax free up to the lifetime low rate cap (currently $225k) while under age 60.

[@imanenigma3348]

@@SuperGuyAu My preservation age was 57 and I turned 60 in April. Part of my super ($213k) is unrestricted and unpreserved, I assume I can take all of the $213k out tax free if I chose to? Or does me turning 60 alter this for better or worse?

[@SuperGuyAu]

@@imanenigma3348 generally, being over age 60 allows you to withdraw unrestricted non-preserved components tax free - unless part of your balance includes a taxable (untaxed) component. You should discuss this with your super provider and accountant prior to making a withdrawal. Alternatively, feel free to seek personal advice from us at www.torowealth.com.au/

[@SuperGuyAu]

@@imanenigma3348 withdrawals are generally tax free from super when over age 60. However, if your balance includes a taxable (untaxed) component, tax may be payable. Discuss with your accountant prior to making any withdrawals.

[@carolecrimeen4396]

Hi, super easy to understand video thank you. I do still have a question though and hope you are still responding to questions. I think my situation will meet the retirement definition 2. I will not be renewing my contract with a company and will have formally resigned by Nov/Dec 23 but will have to 'work out' the year until June 24. I will be 60 on Jan 24 and would like to take my super Feb 24. Will this meet the retirement definition and will I be able to make the declaration and sleep at night? Thank you.

[@SuperGuyAu]

You're welcome. Each situation is unique and has it's own idiosyncrasies. My interpretation would be that the day the arrangement ends would not be the resignation date, but would be when you cease work, as working out the year could suggest and arrangement still remains in place. But, I could well be wrong! An argument could be made for both, depending on the specifics.

[@carolecrimeen4396]

Thankyou so much for your thoughts. I did think that may be the case. I’ll just be up front with them, send along a letter from employer re resignation and the state of things and see what they say. Thankyou so much again for all your videos - they are really so helpful- it can be so confusing despite all the ‘fact sheets’ ATO and Super people publish.

[@darrenherring7788]

Hi I finished working at 54 and have an income from investment properties. So I can access my super at 60 payout the amount owing on a couple of properties and still have the income from the properties even if im paying tax on the income from the properties?

[@SuperGuyAu]

Yes, if you aged 60 or over and retired, you will generally have tax free access to all of your super (under current rules).

[@brianrollins3245]

Does this work the same if super is in pension phase? For example person living off super account based pension receiving $3,000 pm and thinking of return to work a couple of days per week for some extra money.

[@SuperGuyAu]

This depends on your age and the condition that was used to convert your super into pension phase in the first place. But, generally, there is no issue in returning to work. More workers and taxpayers is a good thing in the Government's eyes!

[@russellh24680]

❤😊

[@SuperGuyAu]

Thanks for watching and commenting!

[@TheJesskeo]

I’m so confused

[@SuperGuyAu]

Sorry!

[@sarkong6687]

Dear Mr. C. Strano, thank you very much for informative video. I am 63 and I have been working as a contractor and very choosy about my next future contract work. If I transferred all my super into Pension Account and I contemplating to go back to work, say 10 hours per week would this be covered by the definitions that you have just presented? A lawyer can earn at least $200/h but the cleaner is able to earn 25/h. So what is the amount of money can a retiree earn? Is there an ATO link that you would like to share? I am looking forward to seeing your reply soon. Yours sincerely. SK.

[@SuperGuyAu]

Hi SK, you are welcome. I am glad the video is beneficial to you. One of the definitions of retirement is retiring from work after reaching your preservation age with no intention of returning to full-time or part-time work ever again. Part time is defined as 10-30 hours. Therefore, less than 10 hours per week would be required. The amount earned is not relevant. This may help superguy.com.au/superannuation/conditions-of-release-for-superannuation/

[@grante26]

Hi, why is it you can only work up to 10 hrs under Defn 1 but full or part time under Defn 2 - Is it because under Defn 2 you are over 60yo?

[@DM-vk1yp]

Hi Chris, Thanks for these educational videos, great learning. I have a question regarding Definition #2. I am currently few days over 60, an employment arrangement came to an end 43 days before I turned 60 (not after I turned 60). I am still not working. Does this Def#2 applies in my case? Thanks

[@SuperGuyAu]

Unfortunately not. The employment arrangement must come to an end on or after attaining age 60.

[@DM-vk1yp]

@@SuperGuyAu Thank you very much.

[@user-vc7ks4di3w]

Couldn't you state that you have retired, being over 60 would give you full access to your super? Then, later if your circumstances change you can choose to commence another employment.

[@FollowTheSunAustralia]

What about if someone is 60 , but quit their job and reired over 5 years ago, can they get their super ? Thankyou

[@SuperGuyAu]

If a person has attained their superannuation preservation age and retired, with no intention of returning to full-time or part-time work ever again, then their super will generally be fully accessible.

[@wealthelife]

Still seems a bit vague under definition #2. I am over 60, have a FT job (continuing), casual (contractor) job doing some Doordash, and also self-employed (although my 'business' isn't generating any revenue yet, so the business losses are being carried forward and can't be claimed off tax (yet)). So, according to Def #2, would I be able to move my super from accumulation to pension phase while still working FT if I just stopped doing the Doordash casual job (or doesn't being a contractor count?). It doesn't really matter as I don't really want to make the min 4% pension wdl of my entire super balance, but will probably start a TTR/TRIS account for part of my super instead, but it would be nice to know (since my PT 'business' is as a Financial Planner, so I should know the answer)

[@SuperGuyAu]

The definition of gainful employment can be found here superguy.com.au/definition-of-retirement-for-superannuation/

[@jackyalcatras]

Hi Super Guy 😊 Thank you for this valuable information. I still have one question. As you mention in on minutes 3:23 that I can come back to work if my intention has changed. I’m planning to access all my super on my preservation age and start my small home base business with that super money. And after a year or two my business doesn’t goes well as I expected, can I go back to work? If that allowed then how many hours a week? Thank you.

[@SuperGuyAu]

Hi Johni, unfortunately, starting a home base business would suggest that you have no intention of retiring and you would therefore not satisfy the retirement definition. Therefore, you would probably not be able to access your super in full in the first place.

[@jackyalcatras]

@@SuperGuyAu Thank you, @Super Guy. as my preservation age allowed me to access my super at 59yo. Are you saying that I cannot access it in full, is that mean I can access some of it? Thank you.

[@SuperGuyAu]

@@jackyalcatras Reaching your preservation age allows at least partial access. But your employment status will determine whether or not you have full access. Also, be mindful of tax while under age 60. Read more here www.superguy.com.au/superannuation/what-age-can-i-access-my-super/

[@jackyalcatras]

@@SuperGuyAu Thank you so much.

[@jackyalcatras]

@@SuperGuyAu I have two different super accounts. from my previous employer, I put in a bank as a super saver account. and the super with my employer now is in one of the super companies provided by my employer.

[@T-tx3vj]

Hi Chris, 61yo and I would like to retire and work less than 10 hours per week. I am full time employed now. If I stay with my current employer and my employment status changes from full time to casual but I don't leave and are subsequently re-hired as a casual. Is this still considered a 'employment arrangement come to an end.'? So I can move my superannuation from a accumulation to retirement phase.

[@SuperGuyAu]

Tony, for the retirement definition to have been satisfied, an employment arrangement still needs to have come to an end, despite your employment status changing and you reducing to casual working hours. Other people may have different opinions, but the fact that the arrangement with your employer does not actually end (i.e. you will still have a promised position), then I'm not sure it cuts it. I could be wrong.

[@T-tx3vj]

@@SuperGuyAu Thanks. Sounds like it could be open to interpretation and risky so I will rethink my strategy

[@grante26]

Hi Chris, thanks for the info, I just have a couple of other questions - under your Retirement Defn. 2, I understand that you have left work, at say 63 and so your super account is accessible & I assume gone into pension mode so earnings are now tax free. Is this still the case if you work say 20 hrs a week in a new job say a year later? I understand any new super you receive on your new job will have to go into an accumulation account & so be taxed.

[@grante26]

BTW I am thinking of doing some do some adhoc consultancy work on a contract basis & charging on an hourly basis.

[@SuperGuyAu]

An contribution subsequent to meeting a retirement definition will be preserved and inaccessible. Satisfyingly retirement definition 2 does not prohibit you from working - provided an employment arrangement came to an end.

[@ginatube2026]

I am on TRS and cease employment but I am not 60 yet. I still have plans to work casually or full time. At this stage would I be able to access my super tax free?

[@SuperGuyAu]

Generally, withdrawals from a transition to retirement income stream are received tax-free from age 60

[@financeok5964]

What’s the go say you are 40 and have $2.5mill in super can you retire and have access to super as a tax free pension??

[@SuperGuyAu]

You are generally unable to access your super until you have reached your superannuation preservation age. If you have reached your superannuation preservation age, you should consider how much of your super you are eligible to access and discuss any tax implications with your accountant. There are a few ways to gain early access to super, but strict conditions need to be met. Read more here www.superguy.com.au/superannuation/when-can-i-access-my-super/

[@GalaxyCat001]

For retirement condition #2 is it reaching age 60 or over age 60, ie reaching 61yrs old? Also, if you are say 61 can you access the super from a job that you left 10 years ago, ie 10years ago you left a job that used superfund A so have some money in A. You then got another job that you have been at for 10 years that uses super fund B. Is it possible under defn#2 to access all the super in fund A?

[@SuperGuyAu]

The requirement is age 60 or over. Sorry for not being clearer on this. To meet condition #2, you need to have had the employment arrangement end after attaining age 60.

[@GalaxyCat001]

@@SuperGuyAuThanks for the response. for the 2nd point so once you are 60, can you access super from a fund (fund A) that was linked to an employment arrangement that you had that ended 10 years ago & since that employment arrangement ended 10 years ago Fund A has not had any contributions added to it. Currently working under a different employment arrangement that only uses fund B.

[@SuperGuyAu]

@@GalaxyCat001 The important word is AFTER. You need to have ceased an employment arrangement after reaching age 60. Therefore, ending an employment arrangement in your 50s will not satisfy the condition.

[@user-qi5dm8zi5s]

Hi Chris can a person aged over 60 who ends casual employment and starts his own company continue working on the same job. Is this considered retirement definition #2? thank you

[@SuperGuyAu]

The devil is in the detail. But generally if the arrangement was in place for you to do the same job, prior to ending the casual employment, then most would argue that the arrangement never ended - it only changed.

[@ridezplus1053]

@@SuperGuyAuHi Chris,wonderful info and clearly presented…I have a question…I am currently in a casual employee arrangement as a labourer through an employment agency and when I reach my preservation age which is 60 I want to end this arrangement and find full time employment with a new employer but in the same industry so would this fit definition number two releasing my super..???? Thanks in advance..👍👍

[@SuperGuyAu]

@@ridezplus1053 That seems like a fairly textbook example of ceasing an employment arrangement after attaining age 60. If you have any concerns, I would suggest obtaining personal advice.

[@ridezplus1053]

@@SuperGuyAu Thanx so much for your response buddy..😀😀

[@susanduncan72]

Hi if you quit your job at age 59 and acesss your Super, is your Super taxed. Thanks

[@SuperGuyAu]

Hi Susan, your super balance is made up of two different types of tax components: 'tax-free' and 'taxable'. Every time you make a withdrawal from super is must come proportionately from each component. The tax-free component portion will always be received tax free (lump sum or income stream), even when under 60. If accessed as an income stream, the taxable portion is assessed for tax. If accessed as a lump sum, the taxable portion above the low rate cap (currently $225k) is assessed for tax. Contact your super fund to ask what your tax components are and discuss with your accountant prior to making any withdrawals. Once you reach age 60, all withdrawals should be tax free.

[@susanduncan72]

@@SuperGuyAu Thank you. I have 2 Super Funds. 1 is working for Private businesses where the 15% tax has been taken already and the 2nd Super account is working for the Government where there hasn't been the 15% tax taken. After age 60, If I make a withdrawal, can I select from one account only (not proportionate from both accounts). Also another question please, will my Government Super account have the 15% tax deducted when I withdraw from there, or will it be tax free after age 60. Thanks

[@SuperGuyAu]

@@susanduncan72 Yes, you can select which super fund you can withdraw from. When you access your government super fund or transfer it to another fund, the balance will likely be taxed at 15% due to it being from an untaxed source. If you withdraw it prior to age 60 (not rollover), additional tax may also be payable. I hope that makes sense. It would be best to obtain personal advice and speak to your accountant/super fund prior to doing anything.

[@susanduncan72]

@@SuperGuyAu Thanks, you have been very helpful.

[@pbottiglione]

What if I want to stop working before 60 but I don’t reach preservation age?

[@SuperGuyAu]

You would just need to use money outside of superannuation to fund your expenses.