1.8 million retirees miss out on $2.5bn in tax-free super each year
1.8 million Australians over 65 haven't moved to tax-free retirement accounts, missing $2.5 billion in annual tax savings.
Once you turn 65 and meet eligibility, you can move your superannuation from an accumulation account into a retirement account. In retirement phase, investment earnings and capital gains are generally tax-free, up to certain limits.
In accumulation phase, investment earnings are taxed at up to 15 per cent. Capital gains are taxed at up to 10 per cent.
Move to retirement phase and those same earnings attract zero tax. The catch is that retirement accounts require you to take out a minimum amount each year.
For those aged 65 to 75, it starts at 5 per cent. HESTA's research found the main barriers are confusion, complexity, and not knowing the option exists.
Some people simply find the superannuation and pension systems too hard to navigate.
- 1.8 million
- Retirees missing out
- 2.5 billion dollars
- Annual tax savings forgone
- 5 per cent
- Minimum drawdown, ages 65-75
- Up to 15 per cent
- Tax on accumulation earnings
Why it mattersSwitching costs nothing but can save thousands in tax each year. That leaves more money in your pocket during retirement.
AustraliaAustralian retirees are losing billions in tax savings they're legally entitled to claim under our superannuation rules.
✓ Claims checked against the source and corrected before publish. checked 3 h ago
