Can I Withdraw Money From My Superannuation?
Last updated on March 5th, 2023
Is Super my money? Can I Withdraw Money From My Superannuation?
Superannuation is an important aspect of the Australian retirement system, and is designed to help individuals save for their retirement years. While contributions made to a superannuation account are meant to be preserved until retirement, there are certain circumstances under which individuals can withdraw funds from their superannuation accounts.
The Australian government has introduced a range of measures to allow individuals to access their superannuation savings in times of financial hardship or other exceptional circumstances. These measures are aimed at providing financial relief to those who may be struggling to make ends meet or facing unexpected expenses.
One of the most common reasons for withdrawing funds from a superannuation account is to deal with severe financial hardship. Under the relevant legislation, individuals who have been receiving certain government income support payments continuously for at least 26 weeks and who are unable to meet their reasonable and immediate family living expenses can apply to access a portion of their superannuation savings. This is intended to provide temporary relief to individuals who are experiencing significant financial stress.
Another circumstance under which individuals may be able to withdraw funds from their superannuation accounts is if they have been diagnosed with a terminal illness. In these cases, individuals can apply to access their superannuation savings tax-free, which can help to provide financial support during a difficult time.
Individuals may also be able to access their superannuation savings early if they are experiencing severe or permanent incapacity, which prevents them from working. This can provide ongoing financial support for those who may be unable to earn an income due to a serious medical condition or disability.
It is important to note that while there are circumstances under which individuals can withdraw funds from their superannuation accounts, there are also strict rules and guidelines that must be followed. It is also worth considering the long-term impact of withdrawing funds from a superannuation account, as this can significantly reduce the amount of retirement savings that an individual will have available in the future.
While superannuation is designed to be preserved until retirement, there are circumstances under which individuals may be able to access their savings early. This is intended to provide financial support in times of hardship or exceptional circumstances, but it is important to consider the long-term impact of any withdrawals and to follow the relevant rules and guidelines.
Maximising your superannuation will help you reach your retirement goals. It is important to Speak to a financial adviser before making any major decisions around your superannuation. It's important to get advice from a licensed adviser.
Read more:
