When can you access your super early? A finance and a legal expert explain

Australians are sitting on about A$4.4 trillion in superannuation savings for retirement.

But there are ongoing debates about whether they should be allowed to access some of that money early to help with costs of living.

And making an early withdrawal can have a big potential impact on your future retirement savings – especially if you are in your 20s or 30s.

So what are the rules around early withdrawal, and who do you have to convince if you’re making a claim? Strict rules on early access Superannuation savings are intended to help people cover their living expenses when they have left the workforce and are in retirement.

Taxes on super contributions are lower than income tax rates, and withdrawals after retirement are also at discounted tax rates.

Those low tax rates come with strings attached: rules that prevent people using their superannuation savings for other reasons than income in retirement.

For the most part, superannuation savings in Australia are not readily withdrawn until at least age 60 .

People can withdraw super from age 60 if they have stopped working, or from age 65 even if they have not stopped working.

The Australian Taxation Office is very clear that there are limited circumstances in which you can access your superannuation before retirement: on a range of compassionate grounds (such as for medical treatments, funeral expenses and preventing a forced sale of your home) a terminal medical condition severe financial hardship temporary or permanent incapacity to work.

But the rules are strict.

And who you need to apply to will depend on your reasons for seeking to withdraw money.

For instance, if you apply on compassionate grounds , you need to apply via the tax office and meet all of its criteria .

But in other circumstances, such as severe financial hardship , you need to apply directly through your super fund.

Even if you meet all the criteria – which includes having received government income support payments for at least half a year – it’s up to the fund trustees’ discretion whether to say yes.