Superannuation access can help bridge the gap when a family experiences financial hardship. There are many things that can happen to set a household back financially. Illness or injury can decrease income. Sudden redundancy can also lead to a serious money problem. Even though funds are no longer coming in, your bills still need to go out or you could face utility cut-offs and even lose your home. One way Australians combat these obstacles is through early superannuation access. So how do you withdraw your benefits now?
- Officially Retire
If you’re still working past preservation age, you can receive your benefits by officially retiring. This typically requires verification in the form of a retirement declaration. The retirement declaration must be genuine at the time you submit it based on your current situation.
- Preserved Benefits of Less Than $200
For preserved super benefits that total less than $200, you can withdraw funds when you leave your job if your employer was contributing on your behalf.
- Severe Financial Hardships
The government will allow certain exceptions for individuals who experience severe financial hardships. As long as you meet the guidelines for a “severe” hardship, you may be permitted to access some of your super benefits. This applies to those who have been receiving government support like unemployment benefits for a minimum of 26 weeks. The super fund trustee must also verify that you cannot meet current household expenses.
- Compassion Benefits
Superannuation funds may be paid in situations where an individual is suffering from a terminal illness, even if they are younger than retirement age. You may also be able to access funds if you fall behind on your mortgage payments and the bank is about to sell your home.
- Temporary Residents Who Leave Australia
Non-residents may be eligible to access their benefits should they decide to permanently leave the country. This does not apply to those who are still citizens of Australia or New Zealand, permanent residents, and those who have a retirement visa.
- Permanent & Temporary Incapacity
Those who experience a serious disability or incapacity situation may be eligible to access funds as well as any applicable disability insurance. Even those who suffer from a temporary disability may be able to apply for income protection insurance through a superannuation fund.
- Lifetime Pension Payment
Older super funds may offer the option of taking benefits as a non-commutable lifetime pension. This can be accessed at any age. When choosing a lifetime pension, you cannot convert your benefits into a lump sum.
Learn More About Early Superannuation Access
There are many circumstances that can lead to early superannuation access. If you aren’t sure which apply to you, a professional can help. Contact Carew Lawyers to discuss your benefits and learn more about how to access them when you need them.
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