Early access to super tops the list for adviser queries in February

Some of the other key topic areas included how much can be contributed to super through non-concessional contributions, how transition to retirement pensions work, understanding how the superannuation death benefits work and how total and permanent disability insurance works within superannuation.

AMP technical strategy manager John Perri said that the adviser support team has a rare insight into the issues most top of mind for advisers, based on the queries they receive from their clients.

“This month we saw a focus on understanding the conditions that need to be met before people can access their super,” Mr Perri said.

“In particular, many Australians don’t realise they can access super early if they change jobs between the ages of 60 and 65, even if they continue working in a new job. Super benefits can be accessed as a tax-free lump sum during this period, or used to commence a retirement income stream, which receives both a tax exemption on earnings, and has no maximum pension restriction.”

Mr Perri explained that this may be more tax-efficient than using a transition to retirement pension, which does not receive a tax exemption on earnings and has a maximum income payment of 10 per cent of the account balance.

“The key insight is if someone changing jobs on or after age 60, it may be an opportunity to consider accessing your super,” he said.

“However, it’s important that people fully understand the policy and carefully consider the potential impacts on their super before they decide to access it.”