When can I access my super?
While it is important to understand your superannuation and the integral role it plays in saving for your retirement, it is just as important to know when and how you can access your money.
You don’t have to wait until you’re retired to start thinking about accessing your super. Generally speaking, you can access your super:
- When you reach preservation age and retire
- When you turn 65, or
- Under the transition to retirement rules (if you are eligible), while continuing to work
Your “preservation age” is the age you must reach before you can access your super. As legislation has changed through the years, this age depends on when you were born. It can vary from between 55 and 60. This is not to be confused with your pension age which is used to determine eligibility for government benefits including the age pension.
If you’re aged over 55, “Transition to Retirement” (TTR) strategies allow you to access some of your super (in the form of a ‘TTR pension’) while you are still working.
This opens up a range of possibilities to boost your income, your lifestyle and even your super before you retire.
Once you are retired, you have different options for how you ‘cash in’ your super. These include:
- Taking some or all of your super as a lump sum
- Moving your super into an account-based pension and gradually drawing down your super as income each year
- Keeping your money in super and drawing an income from other sources
In addition to this, Government legislation allows for the early release of preserved super benefits before age 55 in very restricted circumstances including:
- Permanent or temporary incapacity
- Severe financial hardship
- Compassionate grounds (including terminal medical conditions)
- Permanently departing from Australia, having been a temporary resident
If you are not sure whether you are eligible to access your super, your financial adviser will be able to discuss your circumstances with you and provide more information.
Why not schedule a meeting with your financial adviser now?
Disclaimer
Information current as at 18 June 2015
The advice is general in nature only. Before acting you should consider the appropriateness of the information having regard to your personal objectives, financial situation and needs. You should read the relevant Product Disclosure Statement (PDS) and Policy Document before making any decision about a product.