Financial Dictionary

Double Dipping - The practice of exhausting concessionally-taxed superannuation savings (particularly lump sums) in a short period of time after retirement, and then claiming eligibility for the age pension. Government superannuation policy has progressively moved to diminish opportunities for double dipping through the introduction of measures which limit the the size of lump sum payments and encourage benefits to be taken in the form of annuities rather than lump sums.