Q: I am 57 years old, born 1953. I thought I could access my super funds from age 55 but I have been told I can’t access my funds until age 60. Is this correct? If I withdraw my super benefits, is there any tax payable?
Trish’s response: The general rule is that you must have reached your
You have reached your preservation age but if you don’t intend to retire then you must satisfy another condition of release to be able to access your benefits. Examples of some of the more common conditions of release are:
- starting a transition-to-retirement
- reaching the age of 65
- resigning or otherwise leaving a job on or after the age of 60
I explain the conditions of release in my article 12 legal reasons to cash your super.
Tax on super benefits
Tax is usually payable on super benefits withdrawn before the age of 60, although a person’s tax bill depends on the structure of an individual’s super benefits and personal tax situation. If you’re a public servant then you may have more tax on your super benefits (if your super benefits come from what is known as an
I had a heart attack 12 months ago and have vertually had no work since then. I was in hospital for 3 months and then released to recover and gain enough strength to under go a tripple bypass. So in total I was unemployable for well over 6 months. I worked casual and my employer will not give me employment now believing I am a risk and too old. ( Iam 55 but they will not admit I am a risk, only what I have been told by past work mates still working for them ) Since my attack I have lived off my savings which depleted quickly as I have a son who finished year 12 and has started Uni since the attack. I am currently living off credit cards which I have never done in 37 years of my working life. Can I get/claim part of my super under hardship to pay off my credit depts ?. I have applied at Centrelink for assistance but because my wife earns $100 per month over the limit,( $25 per week) they have denied my claims and did not take into account that she is still paying off a car and my ambulance costs.
Hi Graeme
Sorry to hear about your circumstances. You may have a few options:
check if your super account has TPD insurance, you may be eligible to claim on this due to disability [check with your super fund]
if no insurance, accessing super due to permanent disability [check with your super fund]
claim on compassionate grounds [apply via the Department of Human Services, but will need some information from your super fund first] http://www.superguide.com.au/accessing-superannuation/accessing-super-early/serious-illness-or-surgery
I wish you all the best
Regards
Trish
All this talk about Retirement and I can find no basic information on what is it classed at to be retired? I am trying to find out what constitutes retirement in laymans terms? When accessing super and have to “retire” what exactly does that mean and how do I officially become known as retired? Do I need to tell someone or fill out a form or what? Sorry if this is a dumb question but really I have no idea what it means,
Cheers Pete
Hi Pete
Thanks for your comment. Usually you will need to submit a retirement declaration to your super fund to be considered retired. The following SuperGuide articles should assist you:
http://www.superguide.com.au/accessing-superannuation/accessing-super-early/if-retire-and-take-super-can-return-to-work
http://www.superguide.com.au/retirement-planning/what-happens-to-my-super-benefits-when-i-retire
http://www.superguide.com.au/diy-superannuation/smsf-pension-i%E2%80%99m-retired-if-i-return-to-work-what-happens-to-my-pension
Regards
Trish
interested in super news