Moving overseas does not change the fundamental rules of your Australian superannuation; it remains in your account, continues to be invested, and is generally inaccessible until you reach retirement age (55-60+). You can continue to make voluntary contributions, but employer contributions usually stop. Fees still apply, so consolidating accounts is recommended.
No you can't roll over to a fund outside Australia. You can only access your super when you reach preservation age and retire, or when you turn 65 (even if you're still working).
The bring-forward rule enables you to accelerate your super contributions by using up to three years' worth of non-concessional (after-tax) contributions caps in a single year. This means you could contribute up to three times the annual limit in one go, or spread your contribution out over two to three years.
If you're an Australian citizen leaving permanently, the same rules apply to your super, as if you were living in Australia. This means your super must stay in your super fund(s) until you are eligible to access it. Find out when you can withdraw your super.
However, temporary residents are able to access their super if they're moving away from Australia and aren't planning on returning. Applying through your super fund and providing proof of you temporary visa and departure plans should be ample proof for you to be able to cash out out your superannuation payments.
In the organisation's super balance update, it found 2.5 per cent of the population have a super account of more than $1 million, as of June 2021. This represents 417,567 individuals, ASFA said, and is a 29 per cent increase from the 322,200 individuals who held over $1 million in June 2019.
Currently the transfer balance cap is $2 million. After you retire any amounts over the cap need to be transferred into an accumulation account or withdrawn taken out as a lump sum. Earnings on any excess amount in your retirement account are taxed at 15%.
If you are a resident of a country that has a U.S. social security agreement, (other than Austria, Belgium, Denmark, Germany, Sweden, or Switzerland), we will continue your U.S. Social Security payments.
You may be able to get Age Pension for the whole time you're outside Australia, even if you're leaving to live in another country. If you leave within 2 years of returning to Australia to live, your payment may stop if you: came back to Australia to live.
A super income stream is when you withdraw your money as small regular payments over a long period of time. If you're aged 60 or over, this income is usually tax-free. If you're under 60, you may pay tax on your super income stream. See retirement income and tax.
You need to notify us, within 7 days of leaving Australia, if you intend to move or already reside overseas for 183 days or more in any 12-month period. To notify us, complete an Overseas travel notification and update your contact details, including your mobile, international residential, postal and email addresses.
With that being said, what is a wealthy retirement? Well, according to ASFA, a comfortable retirement for a couple is around $75,000 per year and $53,000 for a single person. Given this, I would consider achieving a retirement income of, say, 30% over these amounts to be a wealthy retirement.
Retiring at 60 with $500,000 in super is possible but challenging, depending heavily on your spending, lifestyle, and if you qualify for the Australian Age Pension. You might cover modest expenses using strategies like drawing down around $20,000 annually (using the 4% rule as a guide) plus other income, but it requires careful budgeting, potentially part-time work, and reducing living costs. A financial advisor can help tailor a plan, as $500k alone usually supports a basic to moderate retirement, not a lavish one.
To retire on $100,000 a year from age 65, a single person would need around $1,750,000 and a couple would need $1,250,000 (combined) in super to cover expenses until age 90.
If you have superannuation in Australia, even from temporary work, that account remains when you move overseas.
If you don't claim your super within six months of departing Australia, your super fund will be required to close your account and transfer the balance to the ATO as unclaimed super. While you can still claim your super from the ATO at any time, your super will no longer receive investment returns.
When you cease to be an Australian resident for tax purposes, you may be considered to have 'disposed' of your assets. Subsequently, this potentially results in a capital gains tax (CGT) bill. This process is known colloquially as an 'exit tax'.