Superannuation questions

**Arimeh** · February 5th, 2013, 02:14 PM

Hopefully someone here can help me out!

I've not worked since August 2009, and I was expecting to be able to go back to work in the next year or two - well now that has been put on hold for a little bit longer.

So I was checking my superannuation statement, and I'm just losing money every year because nothing is being put into it and their fees are around $350 a year.

Is there a way that I can take my super out and put it in a bank account (like a term deposit or something?) to try and save some of it? I don't have heaps in there in the first place but I hate the fact that there are fees coming out and nothing happens to the account except they send me out a yearly statement.

I also read somewhere that if you are on centrelink benefits for a year, you can withdraw your super? Does anyone know if this is the case? I've emailed my superannuation fund to ask them, but they haven't gotten back to me (and I avoid talking on the phone because I have a bit of an issue talking to people on it)

Does anyone know what the best thing to do with super if you're not working and contributing to it?

**Frantelle** · February 5th, 2013, 02:32 PM

You maybe able to apply for financial hardship which allow you to withdraw some of your super - but it depends on your funds rules, you will be taxed astronomically and it is capped as to the amount you can take out.

There are also certain requirements like being on a centrelink benefit (not family tax benefit) for a certain period of time.

Your super fund should have an application fund on their website and I think there may be some info on the Humanservices website.

you may need to call your superfund as they probably wont respond to an e-mail enquiry.

Good luck with it all

**Rowellen** · February 5th, 2013, 02:35 PM

You definitely can't just take it out. There is a provision for financial hardship that requires you to have been on CL for a certain length of time (6 months I think but not 100% sure). That might be what you are thinking of. It can be difficult to get but you may be eligible depending on your situation. I think there is a limit of $10K (again not 100% sure).

You can shop around for another fund with lower fees, or look to change your underlying investment strategy. I think the default for most funds is "balanced" but you can go a more high risk option with the potential for higher gain or higher losses depending on what happens or a cash strategy which is similar to a high interest bank account but still through super. All options will have fees. Some funds are higher than others. Theoretically, the investment returns should more than cover the fees but the sharemarkets haven't been performing well for the last few years so most have lost capital.

**Arimeh** · February 5th, 2013, 02:46 PM

Ahhh thanks.

Although I don't really have an investment strategy LOL Should I? I just don't want to lose the lot thats all

**Rowellen** · February 5th, 2013, 02:58 PM

It's more the super funds that have the investment strategy. Usually along the lines of cash, balanced, high growth or similar. You just choose which one. If you haven't chosen, most will just stick you in their balanced option. Which one you choose depends on lots of things such as, you're age, level of risk aversion and so on. A financial planner would talk you through those sort of things. Banks have free planners usually but they will recommend their own products because that is how they get paid. It's not necessarily the best product. By product I mean super fund/ insurance/ whatever it is you're asking about lol.