You can only get your super before you reach your preservation age in very limited circumstances. For example: Incapacity — if you're unable to work or need to work fewer hours because of a medical condition.
There is no superannuation preservation age loophole and penalties will apply for accessing super early. In saying that, there are some legal ways that you are able to access your super under certain conditions, which can be found here.
It's all about your age. If you were born before 1 July 1960 you can get access to your super when you turn 55. If you were born later the age varies between 55 and 60. People aged 65 or over can access super and work as well.
You can withdraw your super if you're. 65 years or over, whether you keep working or not. 60 or over and change employers or temporarily stop working. Under 60 and have permanently stopped working, and you've met your preservation age.
You can withdraw your super: when you turn 65 (even if you haven't retired) when you reach preservation age and retire, or. under the transition to retirement rules, while continuing to work.
You can access your super as long as you've permanently retired. If you end an employment arrangement on or after age 60, you can also access the super you've earned up until then. If you're not ready to retire, you could use some of your super while you're still working, with a Transition to Retirement Income account.
You are allowed a full or partial withdrawal from your preservation fund before retirement. The earliest retirement date is usually 55, although this is subject to the fund rules. These issues are important because they determine if you can a) make another withdrawal and b) the tax thereon.
You can access your superannuation at 55 if you have reached your superannuation preservation age. You will have limited access to your savings if you are still working, but may have full access to your super in the form of an income stream or lump sum if you have permanently retired.
If your super provider allows it, you may be able to withdraw some or all of your super in a single payment. This payment is called a lump sum. You may be able to withdraw your super in several lump sums. However, if you ask your provider to make regular payments from your super it may be an income stream.
Lump sum. You may withdraw a lump sum from super at retirement of any amount up to your total balance. A lump sum payment can be useful if you need to repay debts, or you have some large expenses such as making home renovations or purchasing a vehicle.
The minimum amount that can be withdrawn is $1,000 and the maximum amount is $10,000. If your super balance is less than $1,000 you can withdraw up to your remaining balance after tax. You can only make one withdrawal in any 12-month period.
Can I Transfer My Super to My Bank Account? You can only transfer your super to your bank account if you are eligible to access your super. To be eligible to access your super, you generally need to have at least met your superannuation preservation age.
Using Super To Pay Off Debt
Once savings are withdrawn from super, it is up to you how the savings are used. You can use the withdrawal amount to pay off debt, start a business, buy a car for personal use or even buy a house to live in.
If you have reached your preservation age but are under 60 years of age, retirement means you have ceased work permanently. After you reach 60 years of age, you can access your preserved benefit whenever you cease your employment.
Your 'preservation age'
The preservation age is the age at which you can access your super either as a regular pension payment or by withdrawing a lump sum. This age has gradually been rising to 60 and is based on when you were born: If you were born on or after 1 July 964 your preservation age is 60 years.
Assume, for example, you will need 65 per cent of your pre-retirement income, so if you earn $50,000 now, you might need $32,500 in retirement.
You can use your super to pay off your mortgage when you retire, provided you have attained your superannuation preservation age and satisfied the superannuation definition of retirement.
You can only make one withdrawal in any 12-month period. The super you withdraw is paid and taxed as a lump sum. The tax rate will depend on various factors such as your age. You will need to contact your super fund to request access and provide the appropriate evidence.
No tax is payable on Pension withdrawals after the age of 60, however some tax may be payable on Pension withdrawals made between preservation age and 59. This means that where you are turning 60 in a particular financial year it may be financially advantageous to defer Pension withdrawals until you are over 60.
Can I withdraw super to pay off debts? Yes, but it's important to understand that early super payments made under the severe financial hardship provision can only be used to pay your reasonable living expenses.
You can access your super when you: reach your preservation age and retire. reach your preservation age and choose to begin a transition to retirement income stream while you are still working. are 65 years old (even if you have not retired).
Accessing your preservation fund: You can make one partial or full withdrawal from a preservation fund, prior to age 55. After that, the balance can only be accessed at retirement, from age 55 onward. Your withdrawal is taxed per the withdrawal lump sum tax table below.
Advantages of a preservation fund
Your money is invested and will grow. You have a few investment options as well. 3. You can withdraw some or all of the money before retirement.