Most Australians want to make plans to have a comfortable life during their retirement years. However, they are not sure whether there are rules about any particular retirement age. The average retirement age of Australians is around 64-65 years. As there are no laws regarding the retirement age, some Australians want to retire early.
Can you make an early retirement in Greensborough, Melbourne?
Although Australia has no legal restriction on the retirement age, other age-related rules may affect your early retirement decision.
Preservation Age – It refers to the earliest age when you can access the super in normal circumstances. Preservation age is different depending on your birth year.
Age Pension – Age Pension in Australia is accessible only if you are eligible. You have to pass the income, asset, and residency tests.
You may access some super as your income source even when you are working. It happens if you have reached the preservation age. But, to withdraw the super, you should meet some conditions:
- Full retirement
- Reached the preservation age
- Turning 60
- Employment ceased after 60
Only in some particular scenarios, you can withdraw the super early.
Guide to accessing the super early
To access superannuation before the average retirement age, you should directly contact the fund. You may need to send an application and submit documents. There are different withdrawal rules and processes regarding superannuation funds. In some situations, you may access the super early because of your illness and injury.
Some common reasons for early superannuation
You have terminal illness – Due to your terminal illness, you can claim withdrawal of superannuation early. However, you need to show a medical certificate provided by a healthcare specialist. The certificate should state that you have a very short lifespan due to the illness.
Inability to work – If you have become permanently physically disabled, you may access super early. Serious injuries might have caused this problem. Permanent and total disablement insurance will be available to you.
Other compassionate reasons for accessing superannuation early.
You may need the funds to pay for:
- Palliative treatment
- Funeral of a family member
- Medical treatment
Some tips for early retirement
Retirement from your job never means getting yourself withdrawn from life.
Know the living cost – Calculate your yearly living costs during your retirement years. You can then determine the amount generated from your investments. If you plan to join one of the Lifestyle Communities in Greensborough, you should get the estimate. Communities for retirees and seniors are not only advantageous but also affordable.
Save more – If you start saving more money, you can easily achieve your goals for retirement. Save the surplus amount every month to lead a comfortable life as a retiree.
Be debt-free – Personal debt may prevent you from making early retirement. So, pay your loans and credit card bills early to stay free from liabilities.
So, Australians in Greensborough have to make a proper plan to retire early. There is nothing illegal to get retired before the standard retirement age.
