Can Superannuation Be Withdrawn?

Understanding Superannuation in Australia

Superannuation, or “super”, is a retirement savings system in Australia. It involves a portion of an employee’s earnings being placed into an investment fund, which becomes accessible upon retirement.

When Can Superannuation Be Withdrawn?

Superannuation is designed to provide income in retirement, which is why there are restrictions on when you can access it. Generally, you can withdraw your super when you reach your preservation age and retire, or turn 65 (even if you haven’t retired). Your preservation age depends on when you were born.

Early Access to Super

In some circumstances, you may be able to access your super early. These circumstances are quite limited and include severe financial hardship, certain compassionate grounds, or if you’re permanently incapacitated.

Risks and Considerations

While accessing your super early might seem like a good idea, it’s important to consider the potential impact on your retirement savings. Withdrawing your super early reduces the amount of money you have invested, which could significantly reduce your retirement savings over the long term.

In Summary

While it is possible to withdraw your super under certain conditions, it’s important to remember that super is intended to provide income in retirement. Therefore, it’s generally best to preserve your super until you retire.

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Ready to take control of your super? Book a complimentary 30-minute meeting with one of our Financial Advisers today. We’re here to help you understand your super and plan for a comfortable retirement.