Use of super to buy accommodation

If he is 60 he can withdraw his super, without tax penalty, and use it for whatever purpose he wishes. Some super funds require you to be retired before you can do this. As he will be unable to draw a pension for a few years he will need to make provision to live, an allocated pension with the balance of the super may be the way to go.

If he wishes to continue working and the super fund requires retirement to draw funds, there is nothing preventing him retiring, applying for his super, taking a holiday and then returning to work, all this is quite legal.

Always a good idea to talk with a financial planner before embarking on any of these ideas. Many super funds offer the services of such a planner and there is a free service available through the governments Financial Information Service. (Click those words to go to that site)




Edited by MartinO - 27/July/2012 at 15:54

Originally posted by MartinO If he is 60 he can withdraw his super, without tax penalty, and use it for whatever purpose he wishes. Some super funds require you to be retired before you can do this. As he will be unable to draw a pension for a few years he will need to make provision to live, an allocated pension with the balance of the super may be the way to go. If he wishes to continue working and the super fund requires retirement to draw funds, there is nothing preventing him retiring, applying for his super, taking a holiday and then returning to work, all this is quite legal. Always a good idea to talk with a financial planner before embarking on any of these ideas. Many super funds offer the services of such a planner and there is a free service available through the governments Financial Information Service. (Click those words to go to that site)

Agreed Martin. It's hard to give a direct answer without seeing every little detail. Talking to a financial adviser would be your best option.