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Susan W.
Susan W.
Karana Downs, QLD

Hi I am 68 and retired. My accountant has suggested I put all the money from my superannuation account into an income stream as the profits are now being taxed at 15%. However I must withdraw 5% every year. At present I don’t need this money Wouldnt I be better off to leave it in the accumulation account where it is earning a reasonable amount? If I withdraw it I will have to pay more than 15% on any earnings. Or should I just travel more?

last week


Hi Susan,

Your accountant is right. Leaving it in accumulation is just unnecessarily giving money to the ATO.

Even if you don't need it, the extra amount you don't need, can be saved/invested outside superannuation.

The caveat to this is that if you has significant assets outside superannuation where you might be forced into a taxable position now or some point in the future, you might actually be better to keep the money in accumulation phase paying the 15% on earnings as you won't be able to make the decision later to put the money back into super. In which case, you might start a pension with some of your superannuation, leaving the balance in accumulation.

But remember, you can have a fairly significant amount of money invested outside superannuation before you start paying tax on the earnings.

Or, if you want to travel more, and it fits in with your budgeted retirement income plans, then why not?



Hi Susan,
I am neither an accountant or adviser so this is purely personal opinion.
I would leave it in accumulation as 15% of earnings is a relatively small amount and your balance should continue to grow by at least 4%* net of tax - easily covering current inflation.
Unfortunately none of us has a crystal ball.
Perhaps it’s worth getting a second opinion?
Best of luck

last week

Thank you both. I appreciate your taking the time to answer.

Hi susan,

Best thing you can do is get in front of someone who can look at your WHOLE situation. The tax on earnings in the super fund is one aspect of your situation, but only ONE part of it.

Talk to your accountant and find out what other aspects of your whole situation they have taken into account, and consider getting an opinion from someone else


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