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A critical concept to understand is the notion of preservation, which dictates that retirees cannot access their super funds until they meet specific conditions. The most common condition is reaching retirement age, typically at 65 years. However, individuals can access their super as early as 60 if they cease working, allowing for a smoother transition into retirement.
Minimum Withdrawal Requirements
Once you commence your pension, you must adhere to minimum annual withdrawal limits, which start at 4% for those under 65 and increase incrementally up to 14% at age 95. It’s essential to understand these requirements as they dictate how much you can and must draw from your superannuation, ensuring you remain compliant with tax exemptions.