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We all have those moments when the thought of retiring early crosses our mind, whether due to tough days at work, wanting more time for ourselves or to care for loved ones, or exploring new pursuits like study, volunteering, music, or art. Whatever the reason, you might wonder how your money deferred in SASS affects this plan and whether you can get access to your money.

In this article we explore some things to keep in mind if you need to retire early and opportunities to consider if your situation changes.

Your SASS benefit is subject to the super preservation rules. If you are age 60 – 65 you’ll be able to access all your money in SASS if you leave an employment arrangement and if you are 65 or older you can have immediate access. 

If you are under 60, you can generally only cash out the unrestricted non-preserved part of your super. The rest stays in super until you meet a condition of release, such as leaving your job after turning 60. If you choose to access the unrestricted part, you will need to transfer the remaining balance of your deferred SASS account to another super fund and your SASS account will be closed.

Deferred members need to be cautious if they haven't reached their earliest retirement age, which is typically 58 for most members. If you deferred your account after leaving your job for reasons other than retrenchment, such as resignation, and decide to access your money, the withdrawal benefit will be applied. This benefit is usually less than what you would receive if you kept your money deferred in SASS and accessed it at your earliest retirement age.  

If you're thinking about accessing your SASS benefit, it's a good idea to request a benefit estimate from State Super Customer Service to make an informed decision. You can contact Customer Service on 1300 130 095.

If you were counting on using your SASS benefit to pay down debt or to provide money to live, you’ll need to consider whether you can access your money or whether you’ll need to look at other sources of income.

Understanding how much your will need to retire

Retirement may not be affordable – understanding how much you will need to live on, where the money will come from and projecting how long your savings will last are important steps in making an informed decision to retire early. Around 30% of the income you pay yourself from your super in retirement will come from the investment earnings that you build up throughout your retirement1. The rest is made up of your deferred SASS benefit.

Retiring early gives you less opportunity to build your wealth and if you are drawing down on your savings as an income before the Age Pension becomes available, you may deplete your capital leaving less invested to grow. That’s why it is important to project the outcomes of decisions and be informed. To get started all you need to do is enter a few details and choose the lifestyle options you want in retirement. Visit My Retirement Planner aware.com.au/ retirementcalculator

Retiring earlier than expected?

Learn more about what happens to your SASS deferred benefit if you retire early. We’ll guide you through the right questions to ask.

hi I'm Joe one of the SASS scheme experts here at Aware Super. There are many reasons why you might retire early including redundancy or for health reasons either your own or the need to care for loved ones facing an unexpected early retirement or a stressful situation with your health or finances can be daunting and even overwhelming. Let's take a closer look at how you can navigate unexpected changes with confidence. 

If you have deferred your SASS benefit there are things you need to keep in mind if you need to retire early and opportunities to consider. If your situation changes if you're under age 58 and you want to roll over your benefit, it's important that you obtain a benefit estimate. You may find your benefit is higher if you leave it deferred within the scheme until your scheme retirement age. 

Between ages 58 and 60 you would be able to roll over your deferred benefit to another super fund without consequences. You would have to roll the entire benefit though. If your health prevents you from continuing to work you may be able to claim your benefit you would apply for total and permanent invalidity this could also provide you with a more favorable tax treatment when compared to a normal retirement. 

There is also the ability to claim part of your benefit through severe financial hardship but you will need to meet strict criteria in order to do so with change in circumstances comes opportunities and anyone overage 60 is able to access part of their super even if they continue to work. This is what's called a transition to retirement. Whilst the transition to retirement income stream is not available within SASS it can be accessed by rolling over to a fund that offers this product. 

Sometimes an early retirement is not one we had planned it is important to understand your options and what you can do to help manage unexpected changes getting a more complete view on your financial situation can help you you feel confident about having enough money in retirement. Knowing what you can and can't do with your super especially when life throws you a curve ball is key to making the most of an unexpected situation if you'd like help planning your retirement or navigating unexpected changes to your situation. 

Come and chat to myself or one of my colleagues at Aware Super. We've been helping SASS members for over 30 years and are always here to help you.

Need help navigating the road ahead?

You can speak to a financial planner at Aware Super for tailored advice and guidance based on your personal situation.

For more on how to plan for a fulfilling retirement, including a checklist to get you retirement-ready, download our Retirement Guide.

1 Source :Aware Super modelling , 29 November 2024

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Next steps for deferred members

If you’re a SASS deferred member, knowing your options can help you make sure you have the funds to suit your retirement lifestyle.

Issued by Aware Financial Services Australia Limited (ABN 86 003 742 756, AFSL 238430); wholly owned by' Aware Super (ABN 53 226 460 365).

Past performance is not indicative of future performance.

General advice only. Consider if this is right for you having regard to your objectives, financial situation, or needs, which have not been accounted for in this information. Read the PDS and TMD before deciding to acquire, or continue to hold, any financial product. You should read the Financial Services Guide, before deciding about our financial planning services.