There are specific circumstances
in which a member can access their superannuation benefits before reaching
preservation age, including:
-
Terminal
illness
-
Financial
hardship
-
Permanent
incapacity
-
Temporary
incapacity
-
Compassionate
grounds
Case
Study
Bill is 54 years old and has
terminal cancer, he is worried about how he will pay his medical costs and is
concerned about the burden on his family.
Bill’s GP and cancer specialist have certified that his cancer is
terminal and he has less than 24 months to live. He wants to access the
$400,000 he has in his superannuation fund. Bill therefore applies to his
super fund for early release which is granted. Bill can withdraw the lump sum in full or
as progressive payments.
Items
to consider:
- Lump sum
payments for terminal medical condition are tax free to the member and can be
used for anything the member desires
- Depletion
of future retirement funds may lead to a shortage of funds for intended
beneficiaries
- Ability to
recontribute may be reduced depending on the age of member
- Possible
loss of succession benefits particularly for a surviving spouse.
Should you believe any of the above apply to you please contact Andrew Marshall or Janine Orpwood at Langley McKimmie Chartered Accountants on (03) 5427 8100 for an initial consultation.
We provide accounting and wealth management services to clients in Woodend, Gisborne and Macedon Ranges areas within Victoria Australia.
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