Unlike other retirement investment mechanisms, a superannuation will be available to an eligible employee at a set schedule.
It is a fund that is not dependent upon market performance but on a variety of factors, such as number of years as an employee for a company and the amount of salary received.
But what if you want to claim your super benefits earlier? A superannuation is usually withdrawn once one reaches the preservation age, but are there cases when it can be taken earlier?
The short answer is YES, as long as you’ve met a condition of release. However, the circumstances that allows this to happen is very limited. Here are the different conditions that allow for early withdrawal from your superannuation fund:
How to Withdraw Superannuation Early
Super is less than $200
You are entitled to access your preserved benefit if the super is less than $200 when you leave your job.
There are several ways you can withdraw your super on compassionate grounds. You can access your preservation fund if you are paying for medical treatment – either your own or for a dependent. You can also get you super if you are making loan payments so your house is not taken away.
It is also possible to withdraw from your superannuation fund if you are modifying your home or vehicle to be suited for disability – either your own or that of a dependent. The fund can also be tapped into for funeral or burial expenses.
Severe financial hardship
You can get your superannuation if you satisfy the government’s requirement for being considered under “severe financial hardship.” You are eligible is you have been receiving Commonwealth Government income support, like unemployed benefits, continuously for at least 26 weeks.
The payment you receive is intended for daily living expenses, with the maximum amount to be paid capped at $10,000. You can only withdraw from your super fund once in a 12-month period.
Terminal medication condition
You can access your super early if you have a terminal medical condition. However, you have to meet certain criteria to be eligible. One, you need two medical practitioners to certify that your condition will likely result in death with 24 months. Two, one of the medical practitioners needs to be a specialist in the area that is related to your condition. Three, the certification period of the certificates has not ended.
You can withdraw from your super if you suffer from a physical or mental condition that renders you temporarily unable to work. You will receive regular payments for the length of time you are not able to work.
You can tap into your super if you are considered permanently incapacitated. However, you must satisfy the requirement of “permanent incapacity” required by your fund. This means that your condition, be it mental or physical, prevents you from gaining employment in a field that you are qualified to do via education, experience, or training.
Read more about how to claim Superannuation
Did you know there are over $540 million unclaimed Australian Superannuation payments? Let’s make sure yours not going to end up on the unclaimed pile Apply for your Superannuation Refund today.