You are able to take money out of your superannuation fund if you meet a Superannuation Condition of Release.
The purpose of superannuation is to assist with covering your living expenses once you have ceased work.
Superannuation is important because it ensures that the burden on the Government to fund people in old age is not too high.
The Government offers tax concessions relating to superannuation in order to make it an attractive environment for savings.
Related Posts:
Tax concessions are available for certain contributions made into your superannuation account, tax on earnings within a superannuation account and drawing an income stream from superannuation.
How to Manage Your Super Without Paying a Financial Adviser
Download our 6-step checklist & take control of your super
However, these tax concessions are only available on the premise that you don’t take money out of your superannuation fund until you meet specific conditions.
When Can I Take Money Out of My Superannuation Fund?
You are required to meet a Superannuation Condition to Release prior to accessing your superannuation savings.
Generally, a Superannuation Condition of Release related to retirement from the workforce, reaching age 65 or dying.
However, there are a number of other Conditions of Release that may allow you to take money out of your superannuation fund. Here is a complete list.
You can even have partial access to your super while still working, provided you have reached your superannuation preservation age.
Taking money out of your superannuation fund should be discussed with a professional adviser, such as your accountant or financial planner (or your superannuation provider at the very least), as this is can be a complex area of superannuation law and penalties can be harsh for getting it wrong.
How to Manage Your Super Without Paying a Financial Adviser
Download our 6-step checklist & take control of your super
Hi Chris,
I’m 60 this year and looking at TTR. I am unemployed, have not contributed any super savings for over 4 years. And I’m well under the Cap at just over 200K.
I have 100% of my super fund sum in “Preserved” component.
I need to access some funds to stay liquid before i can release more capital by downsizing my home which i own.
Any ideas on how i can access my super in a limited way to relieve my financial stress?
Hi Elio,
You have reached your superannuation preservation age. If you are retired, with no intention of returning to part-time or full-time work, you can notify your super provider and this should give you unrestricted access to all of your current super savings, which can be taken as a lump sum (fully/partially) or as an income stream.
If you do intend on continuing to work, you can still commence a transition to retirement (TTR) income stream, as you have reached your preservation age.
A TTR pension provides you with the ability to draw between 4% and 10% of your account balance each year, as income. Speak to your super fund about this.
Generally, super withdrawals after age 60 are tax free. Withdrawals while under age 60 may incur tax.
Hope this helps,
Chris
Related Posts
Can I Access My Super at 60 and Still Work?
Working After Retirement Rules
Account Based Pension vs TTR Pension