If you’ve ever worked for an employer, most likely you’ve got at least one super fund. A superannuation fund is a compulsory fund where an employer pays a contribution each time you are paid a wage. That contribution is a small proportion of your pay, and most likely you have been invited to make additional payments to it.
Superannuation funds are generally created so you have money when you reach retirement age.
Traditionally, there are two ways a superannuation is paid to you:
Depending on the year you were born, if you reach retirement age, you are able to start accessing your super funds;
When you reach 65 years old, you are able to access your entire benefit, even if you haven’t officially retired.
There are, however, so other reasons you may want to access your superannuation fund early. Here’s some options:
- If you started a job and left, and the employer contributed less than $200 into the super fund, you are able to draw this out;
- If times are tough, you may fall into severe financial hardship. Your super fund may allow you to access up to $10,000 if you are receiving Centrelink benefits and can show them you need the money to help pay for living expenses;
- If you have a life-threatening illness or permanent disability, you may be able to access your super fund based on compassionate grounds;
- If you’re 55 and over and still working, you are able to start a ‘transition-to-retirement’ pension, which will allow you to withdraw up to 10 per cent of your super balance each year.