Can you access super if retiring at a young age?

If someone decides to retire many years or decades before their preservation age is it possible for them to access and draw down on their super? If that person is financially able to retire at a young age they obviously have the financial knowledge to effectively manage their money. They don't really need money managers to do that job for them. Are there any provisions under Super law for sophisticated investors to access their super early?

 

Nope.
Unless you are terminal or have a situation that causes you to never work again.

 

60 is the earliest unless you have any unreserved amounts.

 

Thanks for the quick replies.

Follow-on question. What about if you leave Australia and become a non-resident for work purposes or as a dual citizen moving to another country? Is your super still stuck inside super?

 

The ATO is(n't) your friend.

Australians living overseas

 

Wow that sucks.

 

but what you could do is to eat into your capital before 60 knowing that when you do reach 60 you would have access to more income/capital at that point.

 

IIRC a condition of release was that you were leaving Australia permanently however if you ever returned you needed to repay the amount taken. Does that still apply?

 

Great tip Terry. Never even considered this option.

 

This would be great but what happens if you decide to return and cannot pay it back? Also, do you have to pay back the amount removed plus the interest said amount would have accrued if left inside super?

 

@eggnog you said you were a sophisticated investor, why wouldn't you be able to repay it?

 

I like to understand all risks and have contingencies for all scenarios. Plus life can be unpredictable.

 

No that never applied. Super is preserved until a COR occurs eg age 60. Of course then it may be relesaed and tax free. However the other county will likely tax it. eg USA, UK etc.

A "DASP" (Departing Australia Super Payment) can apply to some who depart Australia permanently. Its not as simple as it seems. You must have been in Australia on a temp visa that allows work and have departed wit the visa no longer operable. You may need to have it cancelled. Then you can withdraw and "exit" tax ## applies. Citizens and perm residents etc will have their super preserved untilk a COR occurs. It has avoidance rules eg AU / NZ citizens are excluded and only holders of a PAST visa can apply. No visa. No DASP. Not a working visa ? No DASP.

Generally, you can claim a departing Australia superannuation payment (DASP) if the following apply:

• you accumulated superannuation while working in Australia on a temporary resident visa issued under the Migration Act 1958 (excluding Subclasses 405 and 410)
• your visa has ceased to be in effect (for example, it has expired or been cancelled)
• you have left Australia and you do not hold any other active Australian visa
• you are not an Australian or New Zealand citizen, or a permanent resident of Australia.

Note : Super is portable to / from NZ in some cases.
I have clients who are citizens now residing overseas "forever". They arent eligible. Renouncing citizenship is also not a strategy.

Exit tax is 0% for tax free elements (rare). However other elements are taxed at between 35-45 or even 65%. The higher rate is for working holiday makers. This is not taxable income in Australia. Note the ATO reports to the foreign nation if it is a treaty partner.

 

Thanks for the detailed explanation Paul. You are a wealth of knowledge and invaluable asset to this community

 

Thanks Paul, the only reason I raised it was an ex-BIL left Oz to work in Europe never to return & sought successfully to have it released (apparently).

 

It may have been exceptional circumstanes if he was a perm resident or citizen. eg a medical issue etc. There is a list here
Conditions of release

Some people can also access a PART of their super benefits if they previously met a condition of release. Tends to be people in late 50s +
Departing Australia isnt a reason for a fund to pay benefits otherwise.

 

Part of the deal of Super being taxed concessionally is that it is locked up for a long time. Granting access to it for early retirees should absolutely entitle the ATO to take their cut at marginal rates.