Putting away money as you earn it to access later in retirement is very important. It is the responsible way for you to be able to do what you wish as you get older. You don’t want to work beyond your health ability or even your desire to so do simply because you can’t afford to stop. You don’t want to worry all the time after you retire about your expenses or access to the funds to get you through the remainder of your years. Hopefully, you have enough to live on and to go travel or to take part in other adventures you want!
Is it a Good Idea to Access Funds Early?
You may be interested in the early release of superannuation funds you have put away for retirement. You need to think about the pros and cons of doing so. This would mean that you have less money available to you when you retire. Yet, you may have a pressing need right now and could benefit from the use of that money.
If you have a serious health problem and you need the funds for medical treatment and medications, that can certainly be something to think about. If you are about to lose your home or your vehicle due to non-payment, you may need to access your funds to save those assets. You don’t want to lose your home and not have a place to reside once you retire. You don’t want to lose your vehicle and then struggle for transportation.
Making a Claim
You can’t just get the funds early because you want to go buy a new care or take an elaborate vacation. You must show there is a financial hardship or compassionate grounds for withdrawal. A financial hardship is a loss that can occur if you don’t get the money soon to for something. Typically, there have to be circumstances beyond your control that led to the hardship.
Compassionate grounds are in regards to paying for expenses due to the illness or the death of a loved one. You may be in need of the funds to pay for medical care for them or to pay for funeral expenses. If you decide it is in your best interest to withdraw funds early, you need to follow the process to make a claim.
You need to make sure you understand any penalties that will apply to your account due to the early withdrawal. Only ask for the amount you need to take care of the pressing issue you are facing with your finances. If you aren’t sure how much you may need such as for medical bills, ask for assistance with processing your claim. Fill out all of the paperwork completely and provide any documents you are asked to submit. Failure to do so can result in your claim being denied.
There may be time limits after a given incident that you have for filing such a claim. Don’t wait until you are in dire need of the funds as it can take time for your request to be processed and the funds to be disbursed.