Page 7 - Wealth-Adviser-Issue-123 (FWP)

ISSUE 123
OCTOBER 2025

SUPERANNUATION

WITHDRAWALS DEMYSTIFIED

HOW AND WHEN TO ACCESS

YOUR RETIREMENT SAVINGS depositphotos.com

BY WEALTH ADVISER of retirement.” Under superannuation law, the right to
withdraw savings arises only when one of several condi‑
Understanding when and how you can access your super- tions of release is satisfied—chiefly, retirement after preser‑
annuation is one of the most important steps in preparing vation age or turning 65, whichever comes first.
for retirement. The key lies in knowing the legal conditions From 1 July 2024, the preservation age is 60 for all mem-
of release, the tax rules attached to each withdrawal type, bers. A person is regarded as retired if they have ceased gainful
and the strategic decisions that can turn a lifetime of savings employment and have no intention to return to any work of
into a sustainable stream of income. ten hours per week or more, or have simply ended one employ-
This article is designed to give clarity where confusion ment arrangement after turning 60. Full access is automatic
often reigns — explaining in plain language how Australians once the member reaches 65, regardless of work status.
can legally and strategically withdraw their superannuation. Steed’s case studies highlight how critical the “termina-
It explores the rules that determine when access is permit- tion” concept is. In one example, Philip, 62, ended a tempo-
ted, the difference between lump sums and income streams, rary by-election role—legally satisfying a release condition
and how timing decisions affect tax, retirement income, for all super accrued to that date. By contrast, Joel, 60,
and long-term financial security. By connecting the legal reduced his hours but remained on his employer’s books,
definitions of retirement with practical withdrawal choices, meaning he had not met a genuine retirement condition.
the discussion aims to help readers turn their super from a Accessing funds in such a scenario would constitute illegal
static account balance into a flexible, well-managed source early withdrawal.
of retirement income.
Planned October 2025 Reforms: Streamlining
Retirement as a Legal Condition, Not a Stage of Life Access and Oversight
Julie Steed’s When You Can Withdraw Your Super reminds Government announcements in October 2025 introduced
readers that “the superannuation definitions of retirement proposals to simplify access distinctions and strengthen
will differ from many members’ plain English understanding compliance monitoring. These updates—collectively

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