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Meeting a condition of release for retirement - It’s not just about the vibe

Feb 11, 2021, 11:56 AM

By Anthony Cullen

SuperConcepts SMSF expert - Anthony Cullen


There are several Conditions of Release (CoR) that superannuation members could potentially meet that are enshrined in legislation. Retirement is one of, if not the main CoR that members rely on to access their benefits so, it pays to understand the intricacies surrounding it.

This is the primary topic that I will be exploring in my presentation at this year’s SMSFA National Conference which is being held online for the first time from February 16-18.

When it comes to the CoR for retirement, there are many people who will lean back into “the vibe” of the legislation. Once we have reached our preservation age and stopped working, we are retired and can immediately access our superannuation, right? Unfortunately, that vibe is sometimes wide of the mark.

We can all appreciate the vibe of ceasing work and heading into what we believe to be retirement, but is simply stopping work enough to satisfy the CoR for retirement? When it comes to self-employed people, people working in their family business or directors of a company, what defines whether they have retired or not?

Or, more to the point, how do we determine if there has been an employment arrangement for gain or reward to begin with? This is a crucial aspect of meeting the retirement CoR definition.

We will also explore some of the other common CoRs that may be available to members, what you need to do to meet those CoRs and the cashing restrictions that might apply. Rounding out the presentation we will look at the potential ramifications of getting it wrong when the vibe does not cut it.

To hear more, tune into my session at 2:10 pm on Tuesday 16 February 2021. You can book your place at the SMSFA National Conference here.