Withdraw a lump sum from your Retirement Income account
You can withdraw a lump sum from your Retirement Income Account whenever you like. But any amount withdrawn will be in addition to your regular income payments. If you’re over 60, lump sum withdrawals are tax-free.
What to consider before withdrawing a lump sum
Withdrawing a lump sum from your Retirement Income account can impact how long your money will last. Here’s what to keep in mind.
- Future growth potential: Money you withdraw now is no longer invested, meaning you could miss out on the benefits of growth on this money over time. This may impact how long your savings last throughout retirement.
- Government Age Pension: A lump sum withdrawal may affect your Age Pension eligibility, so it’s a good idea to check with Centrelink before you withdraw your money.
- Tax: If you’re using the lump sum for other investments, the earnings from those investments may be taxed. With a Retirement Income account, your investment earnings are tax free.
- How will you use the money? Is it for a one-off need like medical costs or home repairs? Will it improve your quality of life in retirement? Does it align with your long-term financial or lifestyle goals?