Hi, I am 60 years of age and was thinking of semi retiring, have 400,000 in super. My wife is still working and has about 200,000 in super. Not sure if should pull all of mine out and put in bank or agree to receive say 10% per year. New rules mean i pay 15% tax on money earned in super. What is the best way of managing my money today?
Cheers
Garry

Hi Garry,

Please don't rush off and take your super out without talking to a professional about it beforehand. Recent rule changes mean it's very hard to get large lump sums of money into super once it's come out.

Super is a tax structure, set up to help you fund your retirement - exactly as you have outlined you intend to do. There are many things you can invest this money in whilst it's within that super structure and potentially pay a whole lot less tax than investing in your own name.

Earnings on money taken outside of super is taxed at normal marginal rates (just like your wages) where as inside super it's capped at a maximum of 15% as you say (this drops to 0% once you start a retirement pension).

Money inside of super can also have better outcomes when claiming age pension benefits in the future (depending on your assets when the time comes).

Please seek professional financial advice before you do anything, so that you fully understand the impacts. I see you are in Mildura, I can assist via phone/skype if you would like.

Regards
James