You may find that accessing your super is the best way to meet your financial needs in a given situation, for example in the early stages of the pandemic. Individuals are able to legally access the funds in their super earlier but there are conditions of release.
Common conditions of lease:
Reaching your preservation age and retiring (preservation age is between 55 and 60, depending on the individual’s date of birth)
Reaching preservation age and starting a transition to retirement income stream (TRIS)
Ceasing employment once you are 60 or over (even if you don’t retire)
Being 65 or over (even if you don’t retire)
Death
There are more conditions of release that allow individuals to access their super early:
Suffering from financial hardship (more resources due to Covid-19)
Compassionate grounds
Diagnosed with a terminal medical condition
Temporarily/Permanently incapacitated
First Home Super Saver Scheme
Temporary resident departing Australia
If you terminate gainful employment with less than $200 in your super account
After COVID 19’s impact on the world, an influx of employees who had lost their jobs fell into the job market. Many of these came from companies that couldn’t afford to continue their employment. As a result, many individuals had to seek alternative employment, or draw from their super. Some individuals took on multiple jobs to pay bills, and others drew from the super that they had accumulated in the government’s early release scheme specifically for coronavirus related income loss.
Super is held by superannuation funds, and accumulates as a result of how much super an employer pays to the employees’ funds. Many Australians may find that they actually possess multiple super accounts as a result of having “lost” their super accounts during changeovers. It can also happen as a result of changing names, moving addresses, living overseas or changing jobs.
Australians can use the ATO’s online tools to:
View details of all of their super accounts, including lost or unclaimed amounts
Consolidate eligible multiple accounts (including any super held by the ATO)
Withdraw your super held by the ATO when certain conditions are met.
As superannuation funds often have fees associated with their upkeep, as well as insurances that may be tied into it (such as life, total and permanent disability and income protection), it’s important to consult with providers before accounts are consolidated.
