When can I access my super savings?
Superannuation is a long term investment designed to provide for you in your retirement. As such the Government places conditions on when you can access your super. This is to ensure that your super is used for what it was intended for, that is, to fund your retirement.
Generally, you can't receive your super as a lump sum until you have reached age 65, or you have permanently retired from work and have reached your preservation age. (What’s my preservation age?)
Your preservation age depends on when you were born, as shown here:
You may also be able to access your super if you satisfy one or more conditions of release and provide acceptable proof of your identity.
Events that may allow access to your super
There are several events that may allow you to access the preserved part of your super savings. Any after tax contributions made before 1 July 1999 (i.e. unrestricted non-preserved amounts) can be withdrawn at any time.
Severe financial hardship
To apply for the early release of your super savings on the grounds of financial hardship you must meet the following criteria:
If you are aged under 55 and 39 weeks
If you have received Commonwealth income support payments for a continuous period of not less than 26 weeks, and you are in receipt of such payment on the date of your application for early release of your super and you are unable to meet reasonable and immediate family living expenses.
Asset Super will determine the amount of the payment from your account based on your needs, however this is subject to the statutory maximum limit of $10,000 in any 12 month period.
If you are aged 55 and 39 weeks or over
If you are aged 55 and 39 weeks or over and you have received Commonwealth income support payments for a cumulative period of not less than 39 weeks since reaching age 55, and your were unemployed or employed for less than 10 hours a week on the date of your application for early release of your benefit.
You should note that the appropriate tax will be deducted from any payment that is made to you.
If you wish to apply for severe financial hardship, simply call our Client Service team on 1800 805 981 and request an application to be mailed to you.
Specified Compassionate Grounds
The Department of Human Services (DHS) may approve the early release of your super savings if you need money to:
- help pay for medical or dental treatment or transport to these treatments for you and your dependant;
- prevent your home from being sold by the lender that has the mortgage on it;
- modify your home or vehicle to accommodate your own needs, or the needs of a dependant, in the case of severe disability;
- pay for expenses associated with caring for a person with a terminal medical condition (ie palliative care), be it yourself or a dependant; or
- pay for expenses associated with a dependant’s death, funeral or burial.
DHS will determine the amount to be paid, after taking into account the amount you have requested. Asset must comply with DHS's payment instructions.
If you think that one or more of the above specified compassionate grounds applies to you, you need to complete the relevant DHS Early Release of Superannuation Benefits application form or call DHS on 1300 13 10 60 and the appropriate form can be posted, faxed or email to you. Note you must use DHS's application forms – rather than writing a letter.
Terminal Medical Condition
You may be able to access your super savings if you suffer from a terminal medical condition. You must provide Asset with certification from two registered medical practitioners that you are suffering from an illness that is likely to result in your death within 12 months.
At least one of the registered medical practitioners must be a specialist practicing in an area related to the illness or injury, and the certification period must not have ended for each of the certificates.
If you satisfy this condition of release, any benefits that have accrued up to the time your application is approved by the Trustee become unrestricted non-preserved. These can be accessed as a tax-free super lump sum payment during the certification period. Any balances remaining after the certification period ends can be accessed at any time, but may not be tax free.
If you wish to apply for release on the grounds of terminal illness, you should write to Asset with the appropriate certification as described above. For more information about accessing your super under this condition visit the Australian Tax office website at www.ato.gov.au.
Total and Permanent Disablement (TPD)
This means that you have been absent from work due to injury or illness and it is unlikely that you will ever be gainfully employed in a capacity for which you are reasonably qualified through education, experience or training.
A 6 month waiting period will usually apply to insured TPD benefits.
If you wish to apply for a release on the grounds of TPD, you should call our Client Service team on 1800 805 981.
Do you need advice?
In accessing some or all of your superannuation regardless of the reason, you may need to consider tax implications and you may wish to seek some personal financial planning advice prior to making the decision to access your super savings.
At Asset, we provide members with information and advice on three different levels. You can get:
- general information about the fund and your personal account anytime, anywhere;
- advice over the phone about any single aspect of your super account at no cost; and;
- access to more detailed financial advice when you need it, paid for on a fee-for-service basis.
Find out more about this service here.
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