Accessing your super
You’ve spent a lifetime saving for it so how do you actually go about getting your super when you’re ready to retire?
It’s a good idea to start thinking about how you’d like to draw on your super a few years before you retire as there are a number of rules surrounding how you can withdraw your super savings. Seeking financial advice at this stage can also help you decide the best way for you to get your super.
When can I access my super?
You can access your superannuation savings as soon as you:
- reach what is know as your ‘preservation age’ and are permanently retired;
- reach preservation age and are eligible for a transition to retirement pension; or
- turn 65.
Your preservation age is the youngest you can be to start receiving your super, and it changes depending on when you were born:
| Date of birth |
Preservation age |
|
Before 1 July 1960
|
55 |
|
1 July 1960 - 30 June 1961
|
56 |
|
1 July 1961 - 30 June 1962
|
57 |
|
1 July 1962 - 30 June 1963
|
58 |
|
1 July 1963 - 30 June 1964
|
59 |
|
From 1 July 1964
|
60 |
If you reach your preservation age and are yet to permanently retire, you can still access part of your super through a transition to retirement pension.
There are also some very specific circumstances under which you can legally access your superannuation savings early. Read more about these below.
Did you know? Most funds will require you to fill out a designated form and provide proof of identity to begin withdrawing your super. Contact your super fund for information on what they require.
What happens after I access it?
When withdrawing your superannuation, you can choose to receive it as a lump sum, a retirement income stream, or a mixture of both.
If you choose a lump sum, the entirety of your superannuation balance is transferred to your bank account. If you go for an income stream, you will receive a designated amount to your bank account every fortnight/month etc and the rest sits in your super fund and continues to earn investment returns.
Before deciding on how you will withdraw your super, you should note that taking your super out as a lump sum can have significant tax implications and impact on any Centrelink payments you may be entitled to.
Did you know? By law, you don't have to cash out your super just because you've reached your preservation age or turn 65 but be sure to check with your fund on their own rules.
Can I access my super early?
Although superannuation is designed to be preserved until retirement, there are some very specific circumstances where you can legally access your superannuation savings early.
Compassionate grounds
The Department of Human Services (DHS) is responsible for the administration of early release of superannuation on compassionate grounds. Compassionate grounds include expenses resulting from:
- Medical treatment
- Medical transport
- Mortgage assistance
- Modifications to your home and/or motor vehicle needed due to a severe disability
- Funeral assistance
- Care for terminal medical condition
For more information on the above circumstances, visit the DHS website.
If you’re thinking about making an application, make sure you check with your super fund or Retirement Savings Account (RSA) provider first to make sure they will actually be able to take action on any release approval issued by the DHS. Even though you may meet a condition of release determined by the DHS, the release of your super savings continues to be subject to the governing rules of the fund you’re in.
Financial hardship
Early release of superannuation on the grounds of severe financial hardship is administered by your super fund or RSA. You may be eligible if you’ve been receiving a Commonwealth income support payment from Centrelink, and can prove you are unable to meet reasonable and immediate family living expenses. Different criteria apply to those aged over 55 and 39 weeks. The maximum amount that can be released to you in any 12 month period is $10,000. For more information, contact your super fund.
Terminal illness or Permanent incapacity
Early release of superannuation on the grounds of terminal illness or permanent incapacity is administered by your super fund or RSA. If you meet certain conditions and are able to provide proof of your condition, you may be able to have your super released prior to retirement. Contact your super fund for more information or to make an application.
Leaving Australia
You may also be eligible to access your super before retirement if you are leaving Australia permanently. If you are an overseas resident working temporarily in Australia, you may be paid your superannuation money once you have left Australia through what is known as a departing Australia superannuation payment (DASP). For more information or to apply, visit the ATO website.
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