Retirement

Does your client meet the retirement definition?

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Accumulated through compulsory and voluntary contributions as well as earnings, superannuation is a significant source of retirement savings. As clients approach retirement, their minds often turn from accumulating to accessing their superannuation, be it through either an income stream, lump sum, or a combination.

To access superannuation, clients need to meet a condition of release. Upon meeting a condition of release, superannuation can be classified as unrestricted non-preserved, enabling further financial planning strategies related to accessing superannuation.

Retirement is widely understood to be an event which enables access to superannuation, however, there are some legislative nuances when it comes to the specific definition of retirement. This paper focuses on retirement-related condition of release and addresses some frequently asked questions.

There are other related issues when it comes to accessing superannuation. It is outside the scope of this paper to discuss any tax-related issues which may go hand in hand when accessing superannuation. For example, transfer balance cap implications upon commencing income streams and tax issues relating to accessing superannuation for those under 60 are some common tax issues to consider, which are not discussed in this paper.