Ways to access your super
There are government rules about how and when you can withdraw your super?
Crescent Welth super funds are designed to grow over time so that you have money when you retire. The Australian government’s rules allow you to access your super savings:
- If you are 65 years old or over (even if you’re still working and haven’t retired), or
- When you reach your 'preservation age' (which is the age the government sets, calculated based on your date of birth), or
- Under the ‘transition to retirement rules', while you are still working.
Besides this, you can only get early access to super in certain circumstances (e.g. severe financial hardship, compassionate grounds). This is called an ‘early release of super’ and is possible when specific eligibility requirements are met. Depending on your circumstances, super may be withdrawn in one lump sum or gradually withdrawn on a regular basis (similar to how a salary is paid).
If you’re considering accessing your super, we recommend discussing this with a licensed financial adviser to help you understand the pros and cons.
When can you withdraw your super?
To determine when you can withdraw your super, the government sets your ‘preservation age’ based on your age, birth, and work status. Because people are living longer in retirement, the government is gradually increasing the preservation age to encourage Australians to save larger super balances and retire with more money.
If you have reached your preservation age but haven't permanently retired, you can still access part of your super via a ‘transition to retirement’ (TTR) account. So, if you’re approaching your preservation age and planning to retire or work fewer hours, we can set up a TTR account or a retirement account, to give you access to your super.
Here is a handy table to help you work out your preservation age.
|If you were born||Your preservation age is|
|Before 1 July 1960||55|
|1 July 1960 – 30 June 1961||56|
|1 July 1962 – 30 June 1962||47|
|1 July 1962 – 30 June 1963||58|
|1 July 1963 – 30 June 1964||59|
|1 July 1964 or later||60|
10 Halal Super Tips if You Are in Your 60s or 70s
Access your super early
You can't usually access your before you retire but, in special circumstances, it may be possible. These circumstances include the following.
Terminal medical condition
If you have a terminal illness or injury.
To cover unpaid expenses that might include medical treatment, modifying your home or vehicle because of a severe disability, funeral expenses, or a loan repayment to prevent you losing your home
If a medical condition prevents you from working or means you need to work fewer hours
Severe financial hardship
If you can't meet your living expenses and have been receiving government benefits for 26 weeks
If you’re a temporary resident working in Australia, you can withdraw super when you leave.
If you’re considering accessing your super for any of these reasons, we will answer your questions. You might also consider speaking with a government financial counsellor to help you understand your options, how to apply, and discuss other expenses you're struggling to manage, such as housing and bills.
It’s important to understand that if you’re eligible to access super early, your super amount may be fully or partially taxed. In other words, accessing your super early can cost you extra tax that would not be payable if you wait until retirement to access your savings.