Superannuation funds are likely to be placed under increasing pressure to provide so-called pre-retirement pension products (PERPs) to members in the wake of Commonwealth legislative changes which come into effect from July 1.
That is the assessment of Sydney-based specialist superannuation lawyer, Michael Hallinan of Townsends Business and Corporate Lawyers who said the regulatory changes will open up a number of new options for superannuation fund members who have reached preservation age.
Hallinan said that under the new regime people would have a number of options, including quite possibly accessing their superannuation savings to enjoy a short-term sea change.
He said a taxpayer could wind down their working week from five days to four and fill the resulting gap in their income by accessing their superannuation savings.
Alternatively, Hallinan said a taxpayer could move to a less demanding role with a lower salary and access their superannuation savings to fill the resulting gap in income.
“A taxpayer could take a short term sea change by accessing their superannuation savings,” he said.
Hallinan cautioned however, that financial advisers and others recommending that people access their super funds needed to be careful to ensure that people did not exhaust their savings or attract undue attention from the Australian Taxation Office.
