Once you meet a condition of release, you have the option of taking a lump sum payment, an Account-Based Pension, or a combination of the two (e.g. a lump sum payment to pay down debt, then an Account-Based Pension for an ongoing income stream).
Important Things to Consider
- If you decide to make a lump sum withdrawal, there may be tax implications (please refer to page 23 of our Pension Guide for details) and it may affect your eligibility for the Government Age Pension.
- If you make a lump sum withdrawal and transfer the money to a bank account, bank interest rates are generally lower than the investment returns that you may receive if you keep that money invested in a super fund.
- If you change your mind, you may not be able to re-deposit funds back into a superannuation account as there are limits to the amount that you can contribute each year, and you must meet the work test requirements in order to re-contribute money into a super fund (i.e. you must be gainfully employed for at least 40 hours in any 30 day consecutive period during the financial year in which the contributions are made). Additional contributions cannot be made from age 75 onwards, however you can still receive employer contributions if you are working).
Where to Find Further Information
- Our Pension Guide contains further details about making a lump sum withdrawal, including tax implications.
- If you are considering making a lump sum withdrawal, please contact us to discuss the type of financial advice that you may need.
If you have any questions please contact our Member Care Team – we’re here to help.