Many Australians are facing hard times but mortgage repayments and everyday living expenses continue even when you lose your job, or suffer illness or other misfortune.
We have received many emails from readers asking when, and how, you can access your super benefits.
In brief, there are 12 ways to unlock your super early.
In most cases you cannot withdraw your superannuation until you reach your ‘preservation’ age, which is at least 55 and can be up to the age of 60 years depending on your date of birth. For anyone born before 1 July 1960, the
‘Preservation’ in this context simply means locked away, although some Australians who have had superannuation accounts prior to 1999 may also have some ‘unrestricted non-preserved’ benefits which they can access at any time.
When you can access your superannuation
| Date of birth | Your preservation age |
| Before 1 July 1960 | 55 |
| From 1 July 1960 until 30 June 1961 | 56 |
| From 1 July 1961 until 30 June 1962 | 57 |
| From 1 July 1962 until 30 June 1963 | 58 |
| From 1 July 1963 until 30 June 1964 | 59 |
| On or after 1 July 1964 | 60 |
Source: Australian Taxation Office superannuation website (www.ato.gov.au/super)
In most cases, you can only access your super if you satisfy a condition of release. Satisfying a condition of release means your preserved benefits can become unrestricted — that means you can access your super now provided the rules of your fund also let you cash your super.
The Conditions of Release are
1. Retirement. This is the most common condition of release. See also the special ‘retirement’ rule for individuals aged 60 or over who cease an employment arrangement (see Condition of Release No 12).
2. Preserved amount is less than $200. You can access your preserved benefit if you leave a job where your employer was contributing to your fund on your behalf, and the preserved superannuation benefit is less than $200.
3. Reaching the age of 65. As soon as you reach the age of 65, you can access your entire superannuation benefit, even when you haven’t retired from the workforce.
4. Severe financial hardship. If you fall on hard times, the trustee of your fund may give you access to a portion of your benefit, subject to certain conditions. In general terms, here are the rules:
a. You have been receiving Commonwealth Government income support, for example, unemployment benefits, for at least 26 weeks, continuously, and the trustee of your super fund is satisfied that you can’t meet immediate family expenses.
b. Any payment is for the purposes of meeting everyday living expenses and can be one payment of no more than $10,000 (including tax) in any 12-month period.
c. If you’ve reached your
5. Compassionate grounds. Your fund can release, before you retire, part or all of your
6. Non-resident leaving Australia permanently. If you’re a non-resident of Australia, you can access your Australian superannuation benefit when you permanently leave Australia. You’re a non-resident if you enter Australia on an eligible temporary resident visa.
7. Permanent disability. You can access your preserved super if you become permanently incapacitated, that is, the trustee is satisfied that, due to ill health, you’re unlikely ever to be able to work in a job for which you’re qualified by education, training or experience.
8. Temporary incapacity. Your fund may automatically provide income protection insurance, or you may be able to apply for such
9. Death. If you die, your superannuation fund pays your death benefit to your estate, or to your spouse or other
10. Decision to take your benefit as lifetime pension or annuity. Provided you take your super as a non-commutable lifetime pension or annuity, you can access your super at any age. A non-commutable lifetime pension or annuity is one that you receive for your lifetime and which you can’t convert to a lump sum amount. Typically, this lifetime pension option is available in older public sector super funds.
11. Decision to start a transition-to-retirement pension (TRIP). You can access your super as a non-commutable income stream without retiring provided that you’re aged 55 or over and you withdraw no more than 10 per cent of your account balance each year.
12. Cease employment. If you’ve been a member of a super fund since before 1 July 1999, you can cash your restricted benefit only when you cease employment with your employer. A relatively unknown sub-category of this condition of release is that where a person is aged 60 or over but under the age of 65 and they cease an employment arrangement. In these circumstances, the person can be considered ‘retired’ for the purposes of accessing super. If an employment arrangement continues however, then turning 60 on its own is not considered a condition of release.
I have only a small amount of accumulated superannuation – less than $5000 – but would like to access it to meet rising expenses associated with continuing to help support my adult daughter and her young child who live with me. I am not 60 until next April. I do not receive any Centrelink payment and have been living on rapidly dwindling savings for years. Realistically, it is unlikely that I will ever be employed again as my daughter is disabled and cannot yet live independently and needs to be with me so that I can assist with caring for her child. I doubt that her disability would yet be deemed long term enough for me to qualify for a Carer’s payment etc as it is still not fully diagnosed and thus its course is unpredictable. However, not being psychic, I doubt that I could actually guarantee that I will never work again. I may well be forced to (or at least try to claim a job seeker allowance) given the financial situation although my job prospects would be dubious. How “cast iron” does my statement of now being retired have to be? I consider myself to be, right now, but situations change. Would I be better simply to sit it out until age 60? The sum involved may seem paltry but . . . .
Hi Gilda
Thanks for your comment and sorry for the delay in responding. An individual who is aged 55 or over and not expecting to return to employed can be considered retired (they will need to sign a retirement declaration via the super fund) and then can have access to super. If an individual is not considered retired then access may be possible on compassionate grounds if the money is needed to help with a sick child. If you do access super before the age of 60, some tax may be payable.
The following articles may assist:
http://www.superguide.com.au/accessing-superannuation/accessing-super-early/accessing-super-early-on-compassionate-grounds
http://www.superguide.com.au/accessing-superannuation/accessing-super-early/if-retire-and-take-super-can-return-to-work
Regards
hi trish. My exs mother went guranator for us on a house we bought (with her own house) and she is still gurantor on that house which i would like to get her out of. Im wondering if i can get access to my super to pay her out. she is elderly and i hate having her worry about somehting that she is no longer obligated with.
Hi Matt
Thanks for your email.
An individual suffering mortgage stress may be able to access super benefits on compassionate grounds, subject to satisfying certain conditions.
I explain these rules in the following SuperGuide article:
http://www.superguide.com.au/superannuation-basics/super-for-beginners-part-10-can-i-use-my-super-to-reduce-my-mortgage
You can access free financial counselling to help you manage your day-to-day finances from a financial counsellor, and perhaps they can suggets a way to refinance your loan.
The Australian Securities and Investments Commission has a list of the main services across the country. Click on the link to access the list: http://www.fido.gov.au/fido/fido.nsf/byheadline/Financial+counselling
I hope things turn out okay for you.
Regards
Trish
Hi,
I am employed however I have huge credit card debt that I can’t get out of due to only being able to make minimum monthly payment. I wanted to access my super so I can pay off this debt however found out that I have to be unemployed for 6 mnths, I am absolutely gobsmacked that there is no way to access this money. Through Human Services Extreme Financial Harship your bank needs to be about to sell your home. I can’t understand why you can’t get help prior to it getting to the point where we lose our house. I get that this money is preserved for our future…But in the meantime, we get to lose everything we have worked for. There has got to be some sort of help out there. Any ideas???
Hi Noni
Thanks for your comment. Yes, the rules are fairly strict when it comes to accessing super and if you have tried all the options in relation to the super rules, then unless you are aged 55 or over, there is really not much option in accessing super. If you’red 55 or over, you can start a transition-to-retirement pension (if your super fund offers this option) and access up to 10% of your super each year.
What I can do is point you in the direction of a financial counsellor. You can access free financial counselling to help you manage your day-to-day finances. The Australian Securities and Investments Commission has a list of the main services across the country. Click on the link to access the list: http://www.moneysmart.gov.au/managing-my-money/managing-debts/financial-counselling:
I hope things turn out okay for you.
Regards
Trish
Hi, My husband has had 3 operations on his shoulders (2 on 1 shoulder and 1 on the other) The specialist has said he cannot work in the field that he has done for the past 24 years, (Earthmoving) we have been self employed for that time. He tried to return to work in August but his shoulder went again hence the 3rd operation. He has been on Centrelink for the whole year. Also, in January I broke my leg and have had many complications with it, I have now found out through an mri that I have to have it operated on. I have also been on Centrelink since January, I am an aged care nurse and the doctors think i wont be able to work again in my field also. All our savings have dissapeared and we are living fortnight to fortnight waiting for the centrelink money to come through. We have a big car payment which takes up 1/2 of newstart. Is there any chance at all that we can access some of our superannuation to just help us a little. My husband is 48 and I am 47. Thank you
Hi Kathy
Thanks for your email and I’m sorry to read about your situation.
I suggest you check with your super fund to see whether you have any permanent disability insurance cover with your super account, and whether your condition is covered.
Even if you don’t, if an individual satisfies the definition of permanent disability, they may be able to access their super benefits if two doctors declare they are pemanently disabled – again check with your super fund.
You may also be able to access your super benefits under financial harship, or on compassionate grounds.
The following SuperGuide articles may also assist you:
http://www.superguide.com.au/accessing-superannuation/accessing-super-early/12-legal-reasons-to-cash-your-super
http://www.superguide.com.au/accessing-superannuation/accessing-super-early/serious-illness-or-surgery
http://www.superguide.com.au/accessing-superannuation/accessing-super-early/unemployed-and-in-financial-hardship
http://www.superguide.com.au/accessing-superannuation/accessing-super-early/accessing-super-early-on-compassionate-grounds
Regards
Trish
Hi Trish, I’m lucky I found your site. I hope this question doesn’t inconvenience you too much. I have just started to get my super into order. I’m 30. I had 10 differnt funds from many casual jobs. Basicly this ment that I lost losts of money over the years in fees becasue it was spread out in so many funds. I didn’t pay much attention to super when i started work as a teenager. Now I have about $1000 only left between two funds, AUS fund and ISPF. I am about to leave Australia and work overseas for many years. I have previously worked overseas for 3years before. I don’t want this $1000 to disappear. I have been unemployed for the last 2 years in Australia. I believe that becasue I have been unemployed I should be able to claim ‘extreme financial hardship’ and get that $1000. Basicly I want the money now because i need it and if I don’t get it I think it will be eaten in fees. Can you please advise me how best to get this money. Thanks, Damien
Hi Damien
Thanks for your kind comment. If you satisfy the severe financial hardship rules then you can acess your super benefits. You will need to apply to your super funds.
The rules are set out in the Superguide article below, and you can find more information from the Department of Human Services (Via Centrelink):
http://www.superguide.com.au/accessing-superannuation/accessing-super-early/unemployed-and-in-financial-hardship
http://www.centrelink.gov.au/internet/internet.nsf/individuals/early_release_of_superannuation.htm
Regards
Trish