Regardless of what stage of life you are in, any financial advisor will tell you it is never too early to start thinking about your retirement income. In fact, the earlier you start, the better it can be in terms of what you have by the time you retire, as well as the tax savings retirement plans can save you throughout the years. Superannuation is one of the most popular retirement savings options, along with registered retirement savings plans, profit sharing, and investing. Superannuation funds come in different types and are most often set up by employers and contributed to regularly; in some plans, employees can also make extra contributions. Unfortunately, many people are unaware of the superannuation plans offered by their employers and can miss out on the potential benefits.
Super Early Withdrawal
Like most retirement plans, the idea is to not use them until you retire. At that time, your income is at its lowest, so you are going to either not get taxed on the income, or will get taxed the least. Early withdrawal of retirement savings plans, including superannuation, comes with consequences as it means getting fully taxed on them while your income is higher or before the terms of the plan have been met.
The challenge is that regardless of how carefully we plan life, the unexpected can always occur. Whether in the form of unexpected job layoffs, health issues, or family emergencies, sometimes the need to access that retirement income outweights the consequences of early withdrawal.
Early Release of Super
Fortunately, the Australian government understands that sometimes people face challenging circumstances that are beyond their control and make it impossible to let superannuation funds sit there until retirement; sometimes, situations are extreme that make it a necessity to withdraw it early.
Thanks to an initiative launched several years ago, Early Release of Super, there is a way that people who meet certain requirements are permitted to accessing Super early.
Fortunately, there is help for those wanting to applying to the Australian Taxation Office for Early Release of Super. Enlisting the help of a company that specializes in advocating for those in need of early Super withdrawal is the best way to ensure your application is filled out correctly and everything. A company of that nature can educate you on the process, help you complete the transaction, and provide you with support and guidance.
When it comes to handling life’s challenges, money can be a huge assistance. If you are in need of accessing Super early, there are options and assistance.