Super withdrawal options
December 21, 2023Conditions of release of super
The conditions of release that must be satisfied for legal superannuation withdrawals.
You can withdraw your super when you:
-
turn 65 (even if you haven’t retired)
-
reach preservation age and
-
retire or
-
start a transition to retirement income stream while continuing to work
-
-
satisfy an early access requirement.
Retirement means you have ceased gainful employment either:
-
when you were 60 years old or over
-
before you turned 60 years old and you have reached your preservation age – the fund trustee must be satisfied you have no intention of becoming employed again in the future.
Preservation age
Your preservation age is the age at which you can access your super if you’re retired (or start a transition to a retirement income stream).
(Your preservation age is not the same as your pension age. Check with Services Australia for the age pension eligibility requirements.)
Your preservation age depends on when you were born, as set out in this table.
Preservation age based on date of birth
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 |
Accessing your super early
In very limited circumstances, you can access your super early:
-
on medical, compassionate, hardship and incapacity grounds
-
under the First home super saver scheme – to withdraw voluntary contributions you’ve made to your super
-
if you’re a temporary resident and are leaving Australia
-
if your super account balance is less than $200 and your employment is terminated, or you have a ‘lost super’ account with a balance less than $200.
Super death benefits
When a person dies, in most cases their super fund pays their remaining super interest to their nominated beneficiary.
Super paid after a person’s death is called a super death benefit.
Illegal early access schemes
It is illegal to withdraw your super for any reason other than when it is allowed by the superannuation law – that is, when you satisfy a condition of release.
Beware of people promoting early-access schemes. Participating in illegal early-access schemes will cost you a lot more than the super you withdraw.
If you’d like to find out more about withdrawing super, call us.
Source: ato.gov.au August 2023
Reproduced with the permission of the Australian Tax Office. This article was originally published on https://www.ato.gov.au/individuals/super/withdrawing-and-using-your-super/super-withdrawal-options/.
Important:
This provides general information and hasn’t taken your circumstances into account. It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person.
Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business nor our Licensee takes any responsibility for any action or any service provided by the author. Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page.
The post Super withdrawal options appeared first on MLC Contemporary.
Powered by WPeMatico