There are a number of ways that you can access your super before retirement… legally…. but unfortunately most of them require you to die, be close to death, be severely injured or be on the bones of your ar#e.
There are also many dodgy schemes out there promoting how you can access your super before retirement. Be very wary of these, as there are severe consequences for accessing your superannuation prematurely without meeting a condition of release.
When it comes to accessing your superannuation. It is highly recommended that you speak to an adviser and/or your superannuation provider, as this is a delicate area of superannuation law.
Access to your superannuation savings requires you to meet a superannuation condition of release.
There are many forms of a condition of release. The most common forms are:
- Reaching age 65
- Permanent Retirement after your Preservation Age
- Ceasing an employment arrangement after age 60
The above conditions essentially require you to retire or reach age 65.
How to access your super before retirement?
A few conditions of release that allow you to access your savings before retirement are as follows:
Death – If you die, you superannuation can be paid to a beneficiary as a lump sum or sometimes as an income stream.
Terminal Medical Condition – Two registered medical practitioners certify that you have suffered an injury or illness that is likely to result in your death within 12 months. One of these practitioners must be a specialist in the relevant injury or illness
Permanent Incapacity – If you become permanently incapacitated you can access your superannuation.
Temporary Residents – A holder of a temporary visa may apply to access their Australian super once they leave Australia
Severe Financial Hardship – You may withdrawal between $1,000 – $10,000 worth of your super within any given 12 month period if you are under age 55, have been on Government support income payments for no less than 26 continuous weeks and are able to demonstrate severe financial hardship.
Compassionate Grounds – You may apply for a single lump sum by applying to the Regulator for Compassionate Grounds
Temporary Incapacity – You may be able to commence a non-commutable income stream with your superannuation savings, which provides you with limited access to your savings if you are unable to work due to incapacity, not exceeding the amount that you were earning while working prior to becoming incapacitated. This income can only continue while you remain incapacitated.
Transition to Retirement – You are able to commence a non-commutable pension while you are still working, provided you have reached your superannuation Preservation Age.
More Conditions of Release can be found here.
It is important to note that the above payments from superannuation are likely to incur some form of tax, as the only time that superannuation payments are usually received tax free is when the member/recipient is over age 60.
More information on Tax on Superannuation.
You should always consider how long you have before your reach your preservation age before committing funds to super.
If you would like anything clarified or have any further questions about the How to Access Your Super before Retirement or any other topics, please do not hesitate to leave a comment in the section below.