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Under 65 But Need Your Super? Here’s What You Can Do

How can I get my super if I am under 65 and still working full time?

It’s a question that we often encounter from the not-so-soon to be retirees of the workforce.

Many people may not be in a position to be giving up their full-time job in order to gain access to some or all of their super – so what are the rules for gaining access to their superannuation early?

People who are aged over 59 from 1st July 2022 (and over 58 until then) are allowed to start what is known as a Transition To Retirement Income Stream.

This is a type of superannuation pension that was introduced to allow for the transition from full-time work to full-time retirement. Your hours could be cut down without fear of losing income as you could take some of your super to supplement the remainder.

This stream allows you to take up to ten per cent of your opening balance ( from the day you start the pension and then on each 1st of July). As the 30th of June is quickly approaching, someone in this situation could potentially take ten per cent of their super now, and another ten per cent in July.

Unfortunately, those who are aged under 59 do not have access to a transition to retirement income stream, and will also not have access to their super if they were to retire at this time. This is the case in almost all circumstances.

If you are under 59, you will need to fulfil one of a number of requirements that will allow you to gain access to your super. These requirements may include items, such as medical expenses that need to be met by you or your dependent, or that you have been on Centrelink benefits for a long period of time.

If you require access to your super but are not over the age of 59 and/or retired, you will need to speak to your super fund. They will direct you to a government department that will verify if access can be granted to your super.

If you’re someone who often finds it difficult to make large lump sum payments for goods or services, you may want to consider looking into “Buy Now Pay Later” services.

Buy now pay later essentially means that, rather than paying in a full lump sum payment for a product or services rendered, there may be an option to pay through instalments of a certain amount over a set period to make the sum of the full amount in total. This method should allow you to pay in full for the product or service without overly straining your finances – you pay back what you can, as agreed upon when you begin the buy now pay later service.

Some popular buy now pay later services include Afterpay, Zip Pay, Brightepay, and some credit card networks such as  Mastercard and Visa, can offer buy now pay later arrangements.

Though it can be a convenient, immediate solution, it may be challenging to juggle the necessary repayments with other financial commitments. It’s not always the most appropriate method for people, and you should bear in mind your situation and ability in paying back the amounts. 

Before you sign up, keep in mind: 

  • It becomes easier to overspend with buy now pay later services, so know your limits on what you can and can’t afford.
  • You will be charged fees and costs to use the service, which can add up to a princely sum in and of itself.
  • Keeping track of your payments can be tricky if you’ve signed up for multiple services.
  • It could affect your loan applications for a car or mortgage as lenders consider buy now pay later spending just as much as your credit score.
  • Late repayments can appear on your credit report, which affects your ability to borrow money in the future.
  • Layby can be a cheaper alternative to buy now pay later, with no account-keeping or late fees to consider

If you are someone who could make use of BNPL services, you may wish to:

  • Ensure that when using the BNPL service, you stick to a set limit on what you spend so that you can comfortably pay it back later. 
  • Aim only to have one BNPL account at a time to manage payments through, rather than confuse yourself with multiple payments across different providers.
  • Always budget for bills, loan payments and BNPL payments, and 
  • Rather than use your credit card for payments to your BNPL account, consider linking to your debit account instead.

If you would like assistance in planning your financial future, help in managing your budget or some friendly advice, see us for a chat about what we can do for you.

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Jane Noller has been my accountant for the last 15 plus years. I can testify to Jane’s professionalism and expeditious manner in dealing with the day to day issues that surrounds our business accounting.

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I have used Jane & the team for the last 6 years for all of my business & personal accounting needs. They have always been professional, easy to talk to & available when we have needed assistance.

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John Briggs

Jane Noller has been my accountant for the last 15 plus years. I can testify to Jane’s professionalism and expeditious manner in dealing with the day to day issues that surrounds our business accounting.

John Briggs

Registered Building Certifier