5 September 2024
You might be wondering if you can take out some of your super before retirement. There are strict rules about when you can do this. Find out more about the rules and requirements for accessing super early, and what to consider before you apply.
Reasons you can access super early
Below are some common reasons why you may be able to withdraw your super before retirement. These reasons have clear rules and eligibility criteria, and you need to show evidence. Remember, taking money out of your super early can affect how much you’ll have when you retire.
| Reason | How you can qualify |
|---|---|
| Financial hardship | You’ve been experiencing financial hardship for some time and are receiving Commonwealth supported payments. |
| Compassionate grounds | You or your dependent need funds urgently for:
|
| Terminal illness or permanent incapacity | You’ve been diagnosed with a terminal illness or you are permanently incapacitated. |
| Temporary resident leaving Australia | You were a temporary resident earning super while working and living in Australia. After you leave, you can have your super paid out as a Departing Australia Superannuation Payment (DASP). |
Even if you meet one of these conditions, it’s important to also consider how it could impact:
- tax you may need to pay on an early withdrawal
- any government benefits you’re receiving
- any insurances paid through your super.
READ MORE: FULL LIST OF OPTIONS FOR ACCESSING SUPER EARLY
Check your insurance first
If you need to access your super early due to illness or injury, check if you’re eligible to make a claim on any insurance you may have through your super1 first. Income Protection cover can help if you become ill or injured (at work or outside of work) and can’t work. Total and Permanent Disablement (TPD) cover can help if you become totally and permanently disabled and can no longer work.
You should also consider how any insurance you have would be affected if you draw from your super early. One benefit of having insurance through your super is that you pay for insurance costs with your super balance rather than your wallet. To maintain your insurance, you’ll need to leave enough money in your super account to pay for future premiums.
DOWNLOAD INSURANCE IN YOUR SUPER GUIDE
Managing money and the cost of living
If you’re drawing on your savings or having to cut down on things, it’s natural to ask if you can access your super. People struggling financially during the COVID-19 pandemic were temporarily allowed to access their super early. This program has now ended and early access to super is strictly limited to special circumstances. If you need urgent assistance or financial counselling, there are a range of free resources you can turn to.
LEARN MORE: FINANCIAL AND MENTAL HEALTH SUPPORT
Why super matters
Super is a savings system for your future. While you work, you earn, save and invest your super for your retirement. By leaving your super invested over your working life, it has more time to grow.
For example, people who chose AustralianSuper’s Balanced option 20 years ago could have more than 4 times their initial investment today2. That’s because of AustralianSuper’s track record of strong, long-term performance3 and the power of compounding returns.
Get financial advice
Drawing from your super before you retire is not a decision to be taken lightly. It could help to seek advice to work out the best way forward for you. AustralianSuper members can access general advice over the phone for no extra cost4. You can also access comprehensive personal advice from a financial advisor5, though this may incur a fee.
References:
- AustralianSuper insurance is provided by TAL Life Limited (the Insurer) ABN 70 050 109 450, AFSL 237848.
- Based on the Balanced option from 1 July 2004 to 30 June 2024. $100,000 invested for 20 years, with no additional contributions, ending 30 June 2024 would have grown to $453,848. AustralianSuper investment returns are based on crediting rates, which are returns less investment fees and costs, transaction costs, the percentage-based administration fee deducted from returns from 1 April 2020 to 2 September 2022 and taxes. Returns don’t include all administration, insurance and other fees and costs that are deducted from account balances. Returns from equivalent investment options of the ARF and STA super funds are used for periods before 1 July 2006. Investment returns aren’t guaranteed. Past performance isn’t a reliable indicator of future returns.
- AustralianSuper Balanced investment option compared to the SuperRatings Fund Crediting Rate Survey - SR50 Balanced (60–76) Index and SRP50 Balanced (60–76) Index to 30 June 2024. Investment returns are not guaranteed. Past performance is not a reliable indicator of future returns. Returns from equivalent options of the ARF and STA super funds are used in calculating return for periods that begin before 1 July 2006.
- There’s no charge for general advice about your super account. The financial advice you receive will be provided by Link Advice Pty Limited ABN 36 105 811 836, AFSL 238145 and will be their responsibility. Personal product advice provided may attract a fee, which will be outlined before any work is completed and is subject to your agreement.
- Personal financial product advice is provided under the Australian Financial Services Licence held by a third party and not by AustralianSuper Pty Ltd. Some personal advice may attract a fee, which would be outlined before any work is completed and is subject to your agreement. With your approval, the fee for advice relating to your AustralianSuper account may be deducted from your AustralianSuper account subject to eligibility criteria.
This may include general financial advice which doesn’t take into account your personal objectives, financial situation or needs. Before making a decision consider if the information is right for you and read the relevant Product Disclosure Statement, available at australiansuper.com/PDS or by calling 1300 300 273. A Target Market Determination (TMD) is a document that outlines the target market a product has been designed for. Find the TMDs at australiansuper.com/TMD. AustralianSuper Pty Ltd ABN 94 006 457 987, AFSL 233788, Trustee of AustralianSuper ABN 65 714 394 898.
AustralianSuper Pty Ltd ABN 94 006 457 987, AFSL 233788, Trustee of AustralianSuper ABN 65 714 394 898.