The Withdrawal and use of lump sums from superannuation prior to reaching age pension entitlement age is often referred to as 'double-dipping'. What does this mean, and should people be allowed to 'double-dipping'? Support answer with relevant research.
The Withdrawal and use of lump sums from superannuation prior to reaching age pension entitlement age is often referred to as 'double-dipping'. What does this mean, and should people be allowed to 'double-dipping'? Support answer with relevant research.
Superannuation pension plans are created by companies for the benefit of their employees. These funds grow without any tax implications and grow at a predefined set rules unlike other retirement plans which are dependent on market performance. The employees upon reaching a specified age, generally 55 years, become eligible and can withdraw this amount. Sometimes, the employee withdraws the amount before their retirement age of 65 years, and this leads to an event known as double-dipping. The term indicates that the employee is generating both income as salary from its employer as well as withdrawing its retirement amount from the same employer, hence double benefit.
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