Why it’s a bad idea to withdraw your entire Superannuation fund in one lump sum
Over the past two years, more superannuation is being withdrawn out of retirement accounts in lump sums rather than being taken out as a steady income stream.
Australian Prudential and Regulation Authority figures show in the 2014/15 financial year account holders withdrew a whopping $31.4 billion in lump sums as opposed to $29.5 billion being taken from accounts as a pension.
Also in 2013/14, lump sum withdrawals were higher than super savings taken as an income stream.
However, Australians are being warned that withdrawing your entire superannuation savings in one hit can be a bad financial move, particularly for those with larger balances.There are many things to consider before withdrawing all funds at once.
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