Many people spooked by the proposed new tax on super balances over $3 million are contemplating withdrawing large amounts from their self-managed super funds in the next few years before the tax takes effect in 2025-26.

My modelling suggests this is actually not a great idea for most people. But the fact remains that some will do it if they can – ie, they’re over 65, or they’re still 60-65 but have freed up their super by retiring.