07 Nov 2021

Can You Cash Out Superannuation?

The only way to use the money in your super is to cash it out. However, you can only cash out your superannuation if you meet one of the following guidelines: 

  • You are 65 or older.
  • You have retired.
  • You have reached your preservation age, which is between the ages of 55 and 60, depending on your birthday.
  • You qualify for early access due to financial hardship. 

Cashing Out Your Super

You can cash out your super two ways: through an income stream or through lump sums. Income streams are regular payments from your super into your bank account. Lump sums are occasional withdrawals initiated by you. 

In terms of financial hardship, you can cash out part of your super in the following instances:

  • Inability to work or needing to cut your work hours due to a medical condition
  • Can’t afford your living expenses and have been receiving government support for 26 weeks.
  • Compassionate grounds to pay for unpaid expenses, such as medical treatments, disability accommodations and modifications for homes and vehicles, and funeral expenses
  • If you have a terminal medical condition

In these instances, you can cash out up to $10,000 of your super if you are under the age of preservation and can cash out any amount of your super if you are the preservation age, plus 39 weeks. It is important to note that lump sum payments, including financial hardship payments, are taxed. 

If you have questions about cashing out your super or would like to learn more, contact the financial experts at Mortgage House.

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