Are you approaching retirement and want to find out when you can access your super..?
Are you an Australian expat wondering when you’ll start to reap the benefits of the superannuation you’ve accumulated while you were working in Australia..?
Whatever the case may be, we uncover the key facts about accessing your superannuation below.
Accessing Your Super
You can typically gain access to your super under two scenarios:
- Once you’ve retired AND reached your preservation age
- Through a transition to retirement strategy having reached your preservation age
For most of us, we’ll be able to access our superannuation once we retire and reach our Preservation Age. This age is based on your Date of Birth and is outlined in the table below:
Once you’ve retired and reached your preservation age, you can choose to withdraw your super in three ways, each of which is taxed differently, so it’s important that you receive the right advice when deciding on this strategy:
- Lump Sum: You can then choose how you invest this, however you will be taxed outside of the super environment.
- Income Stream: An account-based pension that will pay you a regular income from your superannuation fund.
- Annuity: An agreed amount is paid to you over a specified number of years.
Accessing Your Super Early
A common question we are asked is “how can I access my superannuation early..?” There are typically five scenarios where this could be the case:
- Incapacity: You are either temporarily or permanently disabled.
- Severe Financial Hardship: If you’ve received Commonwealth assistance for 6 months and can’t meet your cost of living.
- Compassionate Grounds: If you’re seriously ill and must pay substantial medical bills.
- Terminal Illness: If you’ve been diagnosed with a critical illness that is likely to result in death within 24 months.
- Temporary Residents: If you’ve worked on a temporary visa in Australia that has now expired and you’re leaving.
If you’ve worked in Australia on a temporary visa, such as a 457 visa, then you may be able to access your super once you leave and your visa is no longer in force. Despite some popular myths, you would not restrict you from entering Australia again on a new visa.
You can find out more about accessing your super in this manner at the ATO website here.
Ignorance Isn’t Bliss
Superannuation is one of the most tax-efficient vehicles we have as Australians, so it’s important to ensure that yours is working for you. Speak to us today for a complimentary review of your superannuation.
To Your Financial Success!
Jarrad Brown is an Australian-trained and qualified Fee-Based Financial Planner with Australian Expatriate Group, division of Global Financial Consultants Pte Ltd providing specialist financial advice and portfolio management services to international and local professionals in Singapore.
Australian Expatriate Group is the trusted fee-based financial advice provider for Australian expatriates living in Singapore and throughout Asia-Pacific. Licensed by Global Financial Consultants in Singapore, our team is Australian-trained, experienced and qualified, allowing us to provide specialist advice to Australians living abroad.
To learn more about how we may be able to help you, please contact us:
✆ +65 8282 5702
To discuss how these changes affect you, click here to book a complimentary consultation: http://bit.ly/Book-Your-Consultation
General Information Only: The information on this site is of a general nature only. It does not take into account your individual financial situation, objectives or needs. You should consider your own financial position and requirements before making a decision.