For most SASS members, deciding to access your money means exiting the scheme. At this point you will need to decide whether to cash out your benefit or roll it over to another super fund into a product designed for retirement like an account-based pension. You can also opt for a combination of these options.
Key points
- You can withdraw your super including your SASS benefit if you’re:
· 65 years or over, whether you keep working or not
· 60 or over and change employers or retire
- The age the government allows you to withdraw your super is different to the age you can apply for the Government Age Pension, which is 67 years.
- You can only access your SASS benefit before age 60 under very limited circumstances. Early access may be granted in special cases such as total and permanent incapacity or financial hardship. Be aware that withdrawing fund from your super early may also have tax implications, depending on the amount taken out.
When you can withdraw your super
Your age and your work status determine when you can withdraw your super.
Your age: Under most circumstances, the cannot withdraw your super until you reach age 60.
Your work status: If you are between 60 and 64 you can access your super if you:
retire
change employers or cease employment.
Any contributions you receive from a new employer or if you return to work will be preserved.
Once you turn 65, you can withdraw your super regardless of your employment status.
There are very limited circumstances where you can access your SASS benefit before you reach age 60. You may be able to access your benefit early under special circumstances like financial hardship or total and permanent incapacity.
Options to start using your super
Once you have access to your super, you’ll need to decide what to do with your benefit.
You can:
Cash it out and take it as a lump sum. It’s important to be aware that you are taking your money out of a tax effective environment and the caps and rules relating to Super will apply if you choose to contribute it back into a Superannuation Fund in the future.
Roll over to another super fund and keep it in Superannuation, for example opening an account based pension.
Or a combination of these options
Potential tax when accessing your super
You will not pay any personal income tax on money rolled over from SASS to another super fund such as an Aware Super account-based pension. Whether you pay any tax on money you cash out of super will depend on:
your age; and
the taxable component of your benefit.
To understand how much tax you’ll pay there a couple of things to consider:
If you are 60 or older, you will not be taxed and money taken as a lump sum from SASS.
In the limited circumstances where you can withdraw Super before age 60 the tax free component will be tax free. You may pay some tax on the taxable component. The amount will depend on whether you access the money as a pension or as a lump sum.
The Taxable component of your super is important in estate planning, regardless of your age. Non-dependents who receive your super after your death may face tax implications.
Tip
At whatever age you access your SASS benefit, it will be net of any contributions tax.
Making an application to access your benefit
You will need to complete the State Super SASS form 412 - Application for Payment of a SASS Benefit form and send it back to State Super to access your money. You can elect to roll over your total balance, cash it out or a combination of both. Once you elect to roll over your total balance or cash it out, you will no longer be a member of SASS.
It’s important to note that once you cash out your super you may not be able to contribute all or part of it back into super within the contributions cap rules, and you will miss out being invested within the concessionally taxed environment.
State Super can help you with your application form and understanding the effect rolling over your benefit will have on your benefit entitlement.
Contact Customer Service between 8:30am and 5:30pm (AEST) Monday to Friday on 1300 130 095.
Email enquiries@stc.nsw.gov.au
Aware Super can help you set up a retirement income account, book an appointment.
What happens when a SASS member dies?
In the event of your death, the lump sum SASS benefit is payable to your spouse (including a de facto spouse). If there is no eligible spouse, the benefit is payable to your estate. This is unlike other super funds where you can nominate a beneficiary.
Although most of us avoid thinking about it, it’s important that the scheme can contact your spouse, family member or executor in the event of your death. You can add your contact details to your account by contact State Super Customer Service. It is preferable that this be provided in writing, and the document will be added to your member record.
Why choose Aware Super for retirement?
We're retirement experts. We have retirement investment strategies which help safeguard your super, so you can relax and be confident that your super will go the distance.
Our investment approach is designed to give our members the confidence to enjoy their retirement and help make their income last the distance.
Retirement support and advice is part of the service for Aware Super members. Find out more.
[SS1] Advice provided by Aware Financial Services Australia Limited (ABN 86 003 742 756, AFSL 238430), wholly owned by Aware Super.
[SS2] General advice only. Consider if this is right for you having regard to your objectives, financial situation, or needs, which have not been accounted for in this information. Read the PDS and TMD before deciding to acquire, or continue to hold, any financial product. You should read the Financial Services Guide, before deciding about our financial planning services.
[SS3] If a SASS member needs to withdraw their benefit because of total and permanent incapacity before age 65, any lump sum payment will have an additional tax-fee amount calculated.
Where to next?
Attend a free SASS webinar
Get your questions answered by an expert. Our webinars provide you with an opportunity to learn more about your scheme - and your decisions to exit.
Find a webinar near you.
How much do you need to save for retirement?
Most people need around 70% of their pay to keep their current lifestyle in retirement. How much you need will depend on when you want to retire, what you're going to do, and where you want to live.
How much you need to retire.
Need advice?
At Aware, our financial planners are experienced in your State Super scheme and know the ins and outs of planning for a successful retirement.
To help you make better decisions for your retirement, book a no cost, obligation free appointment.
Book an appointment.