Getting Super Early

A question  one of my clients asked …

“Trust this falls within your expertise and I am not seeking any tax advise.

My curiosity to learn if I am able to draw my super fund now, the limitation in $, fee involved, upfront tax deduction”

Regards

B.D.

The following is some general information from ASIC and the ATO web sites.

There are some very limited circumstances when you can access your super before you reach your preservation age:

• Incapacity – if you suffer permanent or temporary incapacity
• Severe financial hardship – if you have received Commonwealth benefits for 26 continuous weeks but are still unable to meet immediate living expenses
• Compassionate grounds – to pay for medical treatment if you are seriously ill
• Terminal medical condition – if you have a terminal illness or injury

The Department of Human Services has some useful resources on the early release of superannuation.

You may also be able to access your super early if you are permanently leaving Australia or if you have less than $200 in your super account. Go to the Australian Taxation Office’s individuals’ superannuation webpage and select the ‘receiving benefits’ option.
Super is a lifetime investment that will provide for you when you retire. Grow your super before you stop working so you can make the most of it after you retire.

Your preservation age

Your preservation age is not the same as your pension age. Your preservation age is the age you must reach before you can access your super and depends on when you were born.
The following table will help you work it out.

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

Your pension age is used to determine eligibility for certain government benefits, including the age pension. The pension age is currently 65 for men and 60 for women born before 1 July 1935, gradually rising to 65 for women born after 1 January 1949. Pension age is five years earlier for veterans.
Reference :
https://www.moneysmart.gov.au/superannuation-and-retirement/how-super-works/getting-your-super
https://www.ato.gov.au/Individuals/Super/Accessing-your-super-benefits/When-you-can-access-your-super/

This may contain general advice.  General advice is prepared without taking into account your objectives, financial situation or needs, and because of this, you should, before acting on the general advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs and if the advice relates to the acquisition of a particular financial product for which a Product Disclosure Statement (PDS) is available, you should obtain the PDS relating to the particular product and consider it before making any decision whether to acquire the product.