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Types of superannuation
Superannuation investments include:
- retail funds
- industry, corporate, public sector and other employer funds
- self managed superannuation funds
- small APRA funds
- retirement savings accounts.
How it works
Each superannuation fund:
- has trustees who run it
- has its own written rules and terms
- must also follow government rules.
Where the money comes from
Payments into your superannuation fund come from any of the following:
- your employer if you have a job
- you as an employee or self employed person
- the government in some cases
- you adding funds from the sale of downsizing your home.
Downsizing superannuation contributions may affect your income support payment. Before you make a decision, we recommend you either:
- seek professional advice
- speak to one of our Financial Information Service Officers to discuss your options.
Read about Downsizing superannuation contributions on the Australian Taxation Office website.
Over time these amounts build into a larger investment that earns income. Superannuation investments also have tax benefits.
When you retire
You can choose to get the fund to pay you the money in your account either:
- as a lump sum
- as a superannuation pension.
You can also choose to keep the money in superannuation.
How it affects payments from us
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. How it is assessed depends on the type of income stream.
When you reach Age Pension age
We count your superannuation both:
- in the assets test - the value is the balance on your latest statement
- in the income test under the deeming rules.
The same rules apply to your partner and their super when they are Age Pension age, even if they are not getting a payment from us.
Most funds allow you to access your superannuation investment, but some funds restrict access while you are still working. If you’re unable to access your superannuation investment, you may be able to have it exempted from the income and assets tests. To find out more call the Older Australians line and speak to a FIS Officer.
Watch our video to learn more about superannuation at Age Pension age.
When you withdraw it
Taking money out of superannuation doesn’t affect payments from us. But what you do with the money may. For instance we’ll count it in your income and assets tests if you either:
- use it to buy an income stream
- put it in the bank.
Getting it before you retire
Normally you can only take money out of your superannuation fund either:
- after you reach preservation age
- if your funds are non preserved.
With most superannuation funds you can’t get access to your money until the following apply to you:
- retire from the workforce
- reach a set age.
Preservation age is:
- 55 for people born before 1 July 1960
- slightly older each year after that
- 60 for people born after 30 June 1964.
Early access to superannuation
You may be able to apply for early access. There are strict rules about who can do this. You need to talk to your superannuation fund first.
Read more about early release of superannuation on the Australian Taxation Office website.
To find out more:
- visit a service centre
- call the Older Australians line and speak to a FIS Officer.