The Work Bonus income bank is useful for pensioners who wish to work, particularly those who undertake intermittent or occasional work. Note: from 1 December 2022 to 31 December 2023, a one-off, temporary credit of $4,000 applies to Work Bonus income bank balances.
How much super you'll need in retirement depends on the lifestyle you want. According to the government's MoneySmart website, if you own your home, the rule of thumb is that you'll need two-thirds (67%) of your current income each year to maintain the same standard of living.
Most people retire once they can access their super and/or the Age Pension. An early retiree under 55 years of age is not able to access superannuation or the Government Age Pension so another source of income is needed. People aged 55-64 years may be able to implement a transition to retirement strategy.
You can access your superannuation at 55 if you have reached your superannuation preservation age. You will have limited access to your savings if you are still working, but may have full access to your super in the form of an income stream or lump sum if you have permanently retired.
You can get your super when you retire and reach your 'preservation age' — between 55 and 60, depending on when you were born. There are special circumstances where you can access your super early.
How much super do I need for a 'comfortable retirement'? According to the Association of Superannuation Funds of Australia Limited (ASFA) Retirement Standard, for those wanting a 'comfortable retirement,' the average super balance at retirement should be around $640,000 for couples and around $545,000 for singles.
So looking at the table, you can see that a 60-year old male will need a lump sum of almost $500,000 to provide an annual income in retirement of $42,000 for 20 years. These calculations are based on a 20-year time frame because the approximate life expectancy for Australian males is 84 years and 88 for females.
The best time to retire for tax purposes in Australia is generally once you attain age 60, as it is at this stage that you will have tax-free access to your superannuation.
The Government announced on 1 February 2022 that an aged care workforce bonus of up to $800 will be paid to eligible aged care staff in Government subsidised home care and residential care.
Eligible pensioners have had $4,000 credited to their Work Bonus balance since 1 December 2022, increasing the maximum Work Bonus balance from $7,800 to $11,800. This measure extends the increase to 31 December 2023. The Work Bonus concession of $300 per fortnight will stay the same.
A payment to help students with the cost of moving from regional or remote areas for tertiary study. The Tertiary Access Payment (TAP) is a one off payment of up to $5,000. It's to help eligible students with the cost of moving to study. This is for study after you've finished year 12 or equivalent.
It's all about your age. If you were born before 1 July 1960 you can get access to your super when you turn 55. If you were born later the age varies between 55 and 60. People aged 65 or over can access super and work as well.
Can I withdraw super to pay off debts? Yes, but it's important to understand that early super payments made under the severe financial hardship provision can only be used to pay your reasonable living expenses. Funds are also only available for payments that are in arrears, not for future repayments or to clear debt.
Can I withdraw my super to buy a house? Yes, if you are buying your first home and you have added extra money to your super, there is a way you can access your super to buy a house or another type of home, called the First Home Super Saver (FHSS) Scheme.
The minimum amount that can be withdrawn is $1,000 and the maximum amount is $10,000. If your super balance is less than $1,000 you can withdraw up to your remaining balance after tax. You can only make one withdrawal in any 12-month period.
If you're 60 and over, the income will generally be tax-free. If you're between your preservation age and 59, the components of your super will dictate how it will be taxed.
If you're aged 60 or over and withdraw a lump sum: You don't pay any tax when you withdraw from a taxed super fund.
You can start taking money from most pensions from the age of 60 or 65. This is when a lot of people typically think about reducing their work hours and moving into retirement. You can often even start taking money from a workplace or personal pension from age 55 if you want to.
Your home is not counted as an asset when calculating pension or payment, but it does affect how your pension or payment is assessed under the assets test. If you are a homeowner your asset value limit is lower than someone who does not own their residence.
While you're under Age Pension age
We don't count you or your partner's superannuation in the income and assets tests, if your fund isn't paying you a superannuation pension. If your fund is paying you a superannuation pension, it is assessable as an income stream.