I am 60 and have $100K in super. Should I leave in super or withdraw?
August 14, 2008 by Josie Kay · 3 Comments
If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!
Q. I have approx $100,000 in Superannuation and I want to retire at the end of the financial year this year. I turned 60 at the end of May. Do I have to invest in a particular income stream for it to be tax free or can I withdraw my Super & put it into, say, ING at 7.9% & draw a small income from this & still be tax free? Do I pay tax on the interest the money earns in the account? I would appreciate your advice.
A: Thanks for the question and congratulations on seeking advice and doing your homework. Far too often we see people making financial decisions without really understanding the impact on their future wealth.
In order to be sure your income will be tax free, it needs to stay within the superannuation environment. It is common for people to transfer their super to an account based pension (previously called allocated pensions) which is simply the vehicle used when you start drawing an income from superannuation. Read more
.
