Use the Lump Sum Withdrawal event to take a lump sum out of super and into your household cashflow. It's separate from your regular pension drawdown, and it doesn't count towards the regulatory minimum.
To move money between super funds without taking it out as cash, see the Transfer Super event instead.
Why might someone take a lump sum?
These are only illustrations of common reasons. They aren't suggestions or advice, and whether a withdrawal suits you depends on your own situation.
Paying off a home loan at retirement. Some people use part of their super to clear their mortgage, so their ongoing expenses drop.
A large one-off expense. Some people take a withdrawal to fund a renovation, a car or a big trip, rather than drawing it out of their regular income.
How to add the event
Click Add New Event at the top right of the Planner.
Filter for Investing & super events.
Drag and drop Lump Sum Withdrawal onto a year in the plan.
Configure the event using the options below.
Settings
Person: who is withdrawing.
Super fund: the fund the money comes from.
Amount type:
Fixed amount: withdraw a specific dollar amount, optionally adjusted for inflation.
Full balance: withdraw the entire balance available at the time of each withdrawal.
Amount: the dollar amount, for a fixed amount.
Inflation: turn on Adjust for inflation to increase the amount each year at your plan's inflation rate.
Recurrence: set the event as recurring if you plan to repeat it.
The chart
The Income from Super chart shows the lump sum (purple) alongside your regular super income stream (light blue), and marks your preservation age. The total super balance for the event's year is shown above the chart.
How you'd do this in real life
The event is a simple way to model it, but in the real world there are a few steps.
Check you can access your super. You can generally withdraw super once you reach your preservation age (60 for most people today) and retire, or once you turn 65, even if you're still working. If you're still working past preservation age, your fund may only let you take money out via a transition to retirement pension, and that can't be taken as a lump sum until you meet one of those conditions.
Contact your super fund. Most funds let you request a withdrawal online or through their app, or on a form. Your fund will ask you to confirm your identity and how much you'd like to take.
Choose how much to take. You can usually take part of your balance or all of it. If your money is in a pension account, a lump sum comes out of that account, which also reduces your future pension payments.
Your fund pays you. The money is paid into your bank account, generally after the fund has withheld any tax that applies.
Check the tax. If you're 60 or over, lump sums from a taxed super fund are generally tax free. Between preservation age and 60, part of the lump sum can be tax free, with tax above a lifetime limit (the low rate cap). Your fund can tell you what applies to you.
For more, see the ATO's pages on when you can withdraw your super and tax on super benefits.
FAQ
Does a lump sum count towards my minimum pension drawdown?
No. A lump sum withdrawal is separate from your regular pension drawdown and doesn't count towards the regulatory minimum.
Can I move money between super funds with this event?
No. A lump sum withdrawal takes money out of super and into your household cashflow. To move money between funds and keep it in super, use the Transfer Super event.