• If you’re an employee, you can contribute up to $30,000 per year, including your employers required super contributions. 
• If you are 75+ you need to satisfy a work test if you want to continue making super contributions.
• You can also make after tax contributions of up to $120,000 per year, and even us future contribution amounts to contribute more.

In most cases, money in your superannuation has to stay locked away until you reach your ‘preservation age’. This age depends on when you were born. For example, if you were born before July 1, 1960, your preservation age is 55. For those born on or after July 1, 1964, your preservation age is 60.

To find out when you can unlock your super, the Australian Tax Office has put together a handy chart of preservation ages.

There are a couple of options to manage your super when you change jobs, you’ll need decide which one will work for you. You can either leave your superannuation in your former employer’s fund when you change jobs.

Alternatively, you can roll it over into another superannuation fund. Make sure you keep track of your super accounts to avoid lost super.

Depending on how you withdraw your super and at what age, there will be different tax implications worth investigating, which will depend on your individual circumstances.

In the meantime, some of the options you’ll have around withdrawing your super include:

Transition to retirement pension

A transition to retirement pension enables you to access some of your super via regular payments (once you’ve reached your preservation age), whether you continue to work full-time, part-time or casually.

This may provide you with some financial flexibility in the lead up to retirement. It can also be used as a way to fast-track your superannuation balance by making larger pre-tax contributions. There will be things to consider such as you’ll generally only be able to access a limited amount each financial year and there may be other tax consequences.

Account-based pension

If you’d like to receive a regular income when you do retire from the workforce, an account-based pension (also known as an allocated pension) could be a tax-effective option, noting the value of it will be based on the super you’ve saved, so won’t guarantee an income for life.

You also won’t be limited in what you can take out, but each year you’ll need to withdraw a minimum amount. Note, you can only transfer up to $1.7 million in super into this type of pension too.

Annuity

Another option is an annuity product, which generally provides guaranteed payments over a set number of years, or the rest of your life, depending on whether you opt for a fixed-term or lifetime annuity.

They tend to be a more secure option as they provide a guaranteed income regardless of what might happen in financial markets. However, you’ll be sacrificing some flexibility as you can’t usually make lump sum withdrawals and your life expectancy may also be a consideration.

Lump sum

Taking some or all of your super savings as a lump sum can be tempting, particularly if you want to pay off debt, assist the kids, or go on a holiday. However, it might not be the best option for everyone, as you’ll need to consider how you fund your lifestyle after the money is gone.

While you may be eligible for government entitlements, such as the Age Pension, it might not cover the type of lifestyle you’d like to have after you finish working.

The simple answer is that superannuation is an asset. Just like your other assets held by a couple, your superannuation will be split between you and your spouse in a divorce settlement. However, neither of you will be able to access the money until you retire.

The reality is that superannuation in a divorce can be complicated. Our top tip when it comes to divorce settlements is to get some good legal advice if this is one of your questions.

Another option is to hold your funds in a self-managed super fund (SMSF).

While there are benefits of self-managed super many of the rules that apply to standard funds also apply for SMSF.