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Hello, my name's Robert Goudie, and I'm a financial planner with Mertium Financial Group.
During this sessoin, we're going to discuss preservation or access to your Superannuation
benefits. One of the key features of Superannuation is that your money is held in a trust structure.
This means that a trustee is responsible for looking after your money, and cannot release
it until you meet certain conditions. This is the same as for any trust arrangement.
For instance, a trustee may look after inherited money on behalf of a child until they reach
the age of eighteen. With Superannuation, the objective is to hold the money until you
retire. In Superannuation terminology, your money is 'preserved'. Most commonly, the money
is held in trust until you've permanently retired after the age of 55. Please note the
age 55 applies to people born before the first of July, 1960. if you were born after this
date, preservation age will be between 55 and 60. Permanent retirement means that you
have no intention of working for more than 10 hours per week, although of course you
can change your mind afterwards. If you've reached your preservation age but have not
yet fully retired, you may be able to access your Superannuation by a pension income stream,
but not a lump sum. This is referred to as a transition to retirement. There are other
circumstances where you can access your Superannuation either as a lump sum or in pension form. For
instance, when you reach the age of 65 whether you're working or not; if you're totally or
permanently disabled, so in general terms this means you'll never be able to work again,
you can access your Super. If you die, your beneficiaries will be able to access your
Super when it's paid to them through your estate. The rules also recognize that access
to Superannuation may be a last resort for people in dire need; so you can access your
Superannuation if you're suffering severe financial hardship. To qualify for this, you
must have been receiving Social Security benefits for an extended period of time. You may also
be able to access your Superannuation on a compassionate ground; this generally relates
to severe medical problems. Now some people see their Superannuation as a pot of gold,
and the solution to their immediate money problems – but be warned: there are problems
for those people who try to get around the rules. The Australian Tax Office has prosecuted
some advisors and their clients for breaking them by using early release schemes. Apart
from paying significant fees to access their money, the clients have also had to pay tax
at normal tax rates, not the concessional tax rates on the money that's come out. When
you play by the rules, Superannuation is one of the best tax-effective tools in the world,
and it's available for all Australians. Thanks very much for taking the time to listen; again,
this is general advice only. Please read our general advice disclaimer. Thanks very much.