Have you ever been offered help to withdraw your superannuation early? Generally, you cannot access your super until you retire or meet a condition of release.
Some people promoting illegal super schemes will tell you that they can help you access your super now to pay off credit card debt, buy a house or car, or go on holiday.
These schemes are illegal. They will cost you a lot more than the super you access and may get you into a lot of trouble.
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If you are approached about a scheme, phone us on 13 10 20 immediately to seek advice and ensure your super is protected.
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How illegal super schemes work
Illegal super schemes usually involve a promoter offering to help you access your super early.
Promoters of illegal super schemes usually:
- encourage you to transfer your super from your existing super fund to a self-managed super fund (SMSF) to access your super before you are legally entitled to
- target people who are under financial pressure or who do not understand the super laws
- claim that you can use your super for anything you want - which isn't true
- charge high fees and commissions, and you risk losing some or all of your super to them.
Taking your super out from any super fund early, without meeting a condition of release, or encouraging others to do so is illegal.
Illegal super schemes may lead to identity theft
If you participate in one of these schemes, you may become a victim of identity theft. Identity theft happens when someone uses your personal details to commit fraud or other crimes.
Once your identity has been stolen and misused, it can take years to fix.
Rollovers to an SMSF
Most illegal super schemes require you to roll over your super from your super fund into an SMSF.
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Contact your super fund first. They can advise you whether you can access your super.
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We are working with super funds to protect your retirement savings from illegal early release schemes by strengthening rollover processes.
Last Modified: Tuesday, 30 April 2013