"I am 53 years old and have ongoing medical bills from cancer treatment, on top of my mortgage. I would like to know whether I can access my superannuation early to help cover these costs and if so, what is involved."
- Question from Aadila in Burnie, TAS
Top answer provided by:
Ashley Rowan
Hi Aadila,
Accessing superannuation before the age of 60 is generally only allowed under certain limited circumstances. These include severe financial hardship, compassionate grounds, or permanent disability.
Here are some options for accessing superannuation early:
1. Severe financial hardship: If you're experiencing severe financial hardship, you may be able to withdraw up to $10,000 from your superannuation account before the age of 60. To be eligible, you must have been receiving eligible government income support payments for at least 26 consecutive weeks and meet other eligibility criteria.
2. Compassionate grounds: In cases of certain emergencies, you may be able to access your super early on compassionate grounds. These may include medical treatment or medical transport for you or a dependent, or to prevent foreclosure on your home.
3. Permanent disability: If you have a permanent disability that prevents you from working, you may be able to access your superannuation early. You will need to provide medical evidence and meet other eligibility criteria.
Aadila, based on your brief, you may be eligible to access your super via the “compassionate grounds” method. To apply, you will need to submit an application to the Department of Human Services (DHS) or the Australian Taxation Office (ATO) and provide supporting documentation, including medical evidence and proof of expenses.
After reviewing your application, the DHS may approve a lump sum withdrawal from your superannuation account to cover the cost of medical treatment.
It's important to note that early release of superannuation on compassionate grounds is not guaranteed and each application is assessed on a case-by-case basis.
It's also worth noting that accessing superannuation early can have long-term consequences for your retirement savings, so you should carefully consider all options before making a decision.
Aadila, I appreciate the chance to respond to your inquiry, and I want to extend my heartfelt wishes for your continued well-being and success with your medical treatment.
While the Adviser Ratings Website facilitates the question and answer functionality, all such communications are between users and authorised financial advisers, of which Adviser Ratings has no affiliation. Adviser Ratings is not the advice provider and does not provide financial product advice and only provides information that is general in nature.
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