Break down everything you need to know about making a claim through your super fund.
Making a superannuation claim can feel overwhelming, especially when it’s tied to a significant life event like retirement, illness, or accessing early funds in hardship. Your super is likely one of your largest financial assets, so it’s crucial to approach this step carefully to ensure you make the most of what you’ve accumulated. Here are the top five things to consider when making a super claim.
1. Understand the Process
Before making a claim, make sure you understand the steps involved. Each super fund has its own process, so take the time to read through the information on your fund’s website or call their support team to ask about the timeline, documentation, and any forms you’ll need to fill out. This can prevent unnecessary delays and ensure you’re ready with everything you need when the time comes.
2. Consider Your Tax Implications
Superannuation withdrawals aren’t always tax-free, especially if you’re accessing your super early. For people under 60, super withdrawals may be taxed, depending on whether your super is taxed or untaxed. Once you turn 60, super withdrawals from a taxed fund are usually tax-free. However, this varies, so it’s important to seek advice on how accessing your super could impact your overall tax situation.
3. Review Your Insurance Coverage
Many people forget that their superannuation may include life insurance, total and permanent disability (TPD) insurance, or income protection. Before making a claim, review your insurance coverage through your super fund. If you claim your super and close your account, you might lose this insurance coverage.
4. Evaluate Your Investment Options
Even when you’re making a super claim, your funds might remain invested for some time. Check with your super fund to understand what investment options are available to you during the claim process. This is particularly relevant if you’re transitioning to retirement or taking a pension from your super.
5. Seek Help If Things Don’t Go Smoothly
Sometimes, super claims don’t go as planned. Whether it’s a delay in receiving your funds, incorrect information, or a dispute, know that there are steps you can take. Start by contacting your super fund to resolve the issue. If that doesn’t work, the Australian Financial Complaints Authority (AFCA) is there to help with any disputes related to superannuation.
Making a super claim is a significant financial move, and ensuring you’re prepared can save you time and stress. Take the time to understand the process, review your options, and, most importantly, seek professional advice where needed. Weigh up your options and learn if you Should Get Insurance Through Your Super Fund. And here is our guide for What to Expect from Your Super Fund—and What to Do If You’re Not Happy.
