There are a number of different ‘conditions of release’ which, if met, will allow you to access some or all of your super. Some of the more common ways include the following:
1. Meet Your Preservation Age and Retire
Depending on your date of birth your preservation age may be between the ages of 55 and 60. If you have reached this age and you are no longer working, you can access your super as a pension or as a lump sum with no limitations. If you have reached your preservation age and are still working you may be able to access your super via a Transition to Retirement Pension. Under a Transition to Retirement Pension, you can only access up to 10% of your super fund balance as a pension payment each year.
2. Reach Age 65
When you reach age 65 you can access youir super as a pension or as a lump sum regardless of whether you are working or not.
3. Severe Financial Hardship
Generally, to be able to meet this condition, you must be able to prove that you have been in receipt of Commonwealth Government Income Support for at least 26 weeks. In addition the payment must be used for everyday living expenses and the payment cannot be more than $10,000 for a 12 month period.
4. Terminal Illness
You can access your super at any age if you have a terminal medical condition. A terminal medical condition exists if two registered medical practitioners have certified that the illness or injury will result in death within 12 months.
Please contact LMC Accounting and Financial Services if you need further advice regarding these matters.