Get ready for a battle royale over superannuation

Originally posted by Hittman: ↑

Winding down Superannuation is never going to happen It is too large a pool of national savings.

What is happening now in regards to people reaching their preservation age (or 65 and can do with it as they please)

Is more and more over 55's, emphasis on the word OVER, are reaching the age at which the can access their Superannuation and using it to pay off the family home, not assessed, and going on the pension.

5 years before preservation age the are borrowing against the house to help the kids with a deposit, renovations, extensions, new car or maybe a holiday. The government are letting the boomers get away with doing it because on average boomers super accounts are relatively low balances. Yes there are exceptions but on the whole.. low

Generation X and younger is not going to be afforded the same luxury of running their super balance down ad going on a pension. Preservation Age will Rise, Lump Sum Withdrawals Limited and the introduction of Super Pensions or Annuities to make you SUper last longer and keep you off an old age pension.

These changes have occurred already over the years that restrict your access. No changes to my knowledge have been made to make it easier to get your own money.

1. You could take your Superannuation as a Pension at any time, regardless of age. STOPPED

2. If you were leaving Australia permanently to live overseas, you could take your money with you. STOPPED

3. You could set up a Transition to Retirement and take part of your Super as a wage and reduce your hours of work.

This has been changed to 60 years of age before you can do it.

60 is the minimum preservation age for anyone born after July 1st 1964. Why have a TTR option and a preservation age? It doesn't make sense and is not necessary.

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Hittman wrote:
"If you were leaving Australia permanently to live overseas, you could take your money with you. STOPPED"
It is not exactly correct.
My son permanently left Australia, as an accountant from big four, he has done everything by the book.
From ticking correct box on departure card, disposing of all Australian assets, bank accounts, purchasing property to have permanent address overseas. He is removed from electoral role, and doesn't pay any tax in Australia.
Still substantial amount of the super money he is not able to access. Only fees are eroding it.
He will be able to withdraw money when he reach Australian pension age. It doesn't matter country where he is living now, pension age is 62.