Taking out your full super in a lump sum is very tempting but may come with tax consequences. Talk to a financial adviser to find out what tax, if any, you will have to pay. There may be options available to withdraw it in stages, depending on your age.
- You can invest your money elsewhere
- You can pay off your debts
- You have cash available for large purchases such as a holiday or car
- You may have more tax exposure
- You may spend cash now that you need later
- If the cash isn’t invested well, it may not grow which may impact future income