Did you know that from July 1, 2005 super fund members can request to transfer a portion of their superannuation savings to another super fund?

The new rules allow members to request the transfer at any time as long as two conditions are met.

• The member must not have made a portability transfer in the past 12 months; and
• The amount being transferred can only be part of the total savings and will not result in the member’s account balance being less than $5,000.

Prior to the new rules, a member could only transfer their super savings upon ceasing employment or with their employer’s consent.

For more information contact your super fund.

Did you know that you can generally only access your super when you reach preservation age and permanently retire from the workforce?

Superannuation is intended to help make life more comfortable in retirement and therefore you can only access your super savings when you permanently retire from the workforce and reach an age called your ‘preservation age’.

Your preservation age depends on when you were born.

Did you know that there are some limited circumstances where you may be able to apply for early release of your super savings?

Superannuation is preserved in your super account to make sure you have enough money to live on in retirement. Sometimes however, circumstances may make it necessary for people to dip into their savings earlier. Two of the allowable reasons to get your super early are:

• on grounds of severe financial hardship. A member must be able to prove that they have been receiving a Commonwealth income support payment continuously for 26 weeks and that they are not able to meet their reasonable and immediate living expenses.
  
• on compassionate grounds. These are outlined in the law and the Australian Prudential Regulation Authority (APRA) must consider all applications before a final decision is made by your super fund.

Superannuation is intended to protect Australian workers from having a reduced standard of living in retirement and taking it out prematurely can have a big impact on the amount of tax collected and your comfort in retirement.

For more information contact your super fund.

Did you know that you should watch out for scams that involve the early release of your super savings?

If you are under the age of 55 and come across a scheme that offers to get your preserved super savings out early - watch out! These illegal schemes often result in:

• People being cheated out of their hard-earned savings
• Severe tax and legal complications
• Having significantly less to live on in retirement.