Page 9 - Wealth-Adviser-Issue-123 (FWP)

ISSUE 123
OCTOBER 2025

always proportionate, so known contribution history aids 4. Model drawdowns using adviser tools reflecting inflation,
optimisation. life expectancy, and market variability.
• Stagger lump‑sum withdrawals to remain under annual 5. Seek regulated financial advice to align withdrawal se-
hardship or reform-imposed limits once new rules com- quencing with lifestyle, estate, and Age Pension goals.
mence.
Couples commonly apply the re-contribution strategy: The Modern Meaning of Withdrawal
one partner withdraws and re-contributes funds to even out Retirement today is less about leaving the workforce
account balances for future tax and estate planning efficiency. entirely and more about re-ordering priorities. As Why a Tr
aditional Retirement May Be Pushed Back 25 Years argues,
Avoiding Early‑Access Pitfalls Australians are working longer by choice and necessity, using
Early-access breaches remain a significant risk. As superannuation flexibly across multi-stage retirements.
Julie Steed illustrates, members often “intend to retire” yet The central challenge is converting balances into reliable,
maintain casual employment, invalidating their release. inflation-adjusted income while staying within rule bound-
The ATO stresses that until a formal end-to-employment aries. With the right guidance, the evolving Australian sys-
arrangement occurs—or the individual turns 65—withdrawal tem provides the tools to do just that—structured freedom
outside approved conditions is illegal, taxable, and may with secure footing.
incur additional penalties.
Common triggers of unintentional breaches include:
• Reducing hours instead of formally ceasing employment. References
• Taking partial lump sums under 60 without hardship • Steed, Julie. When You Can Withdraw Your Super. Firstlinks, Oct 2025.
grounds. • Gruber, James. Supercharging the 4 Per Cent Rule to Ensure a Rich‑
• Misreporting income streams that haven’t transitioned to er Retirement. Firstlinks, Aug 2025.
retirement phase. • How to Shift into Pension Mode. Firstlinks, Feb 2025.
Professional confirmation from a licensed adviser or the • Why a Traditional Retirement May Be Pushed Back 25 Years. First‑
fund itself should always precede any withdrawal instruc- links, Sep 2025.
tions. • Australian Taxation Office. Withdrawing and Using Your Su‑
per (QC 23234), updated Oct 2025.
Preparing for the Reforms • Australian Taxation Office. Retirement Withdrawal – Lump Sum or In‑
To prepare for the October 2025 reforms and ensure come Stream, updated Feb 2025.
compliance with existing ATO law: • AustralianSuper. Access Your Super for Retirement, Sep 2025; Transi‑
1. Verify your employment termination status and preser- tion‑to‑Retirement Income Streams, Sep 2025.
vation age. • Treasury of Australia, Superannuation Changes: 2025–26 Budget Sum‑
2. Review MyGov-linked fund details to confirm personal mary, Sep 2025.
eligibility and digital identity verification. ‑ Basic Steel Adelaide. Superannuation Withdrawal Rule Re‑
3. Update contribution timing—no new contributions can be fresh from October 20, Oct 2025.
made to a pension account after commencement.

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