It’s normal to dream about retirement and wonder when you can finally get that super you’ve been saving for years. You’re not the only one! As a financial blogger who has spent a lot of time researching this subject, I’ve put together this complete guide to help you figure out when and how you can access your super.
The Magic Number: Your Preservation Age
Straight to the point: your “preservation age” is the main thing that determines when you can access your super. No, this is not the same as the retirement age, which is 67 right now. It depends on when you were born:
| Date of Birth | Preservation Age |
|---|---|
| Before 1 July 1960 | 55 |
| 1 July 1960 – 30 June 1961 | 56 |
| 1 July 1961 – 30 June 1962 | 57 |
| 1 July 1962 – 30 June 1963 | 58 |
| 1 July 1963 – 30 June 1964 | 59 |
| After 30 June 1964 | 60 |
So if you were born after June 30 1964 your preservation age is 60. That’s when you can potentially start accessing your super (with some conditions, which we’ll get to).
Main Conditions of Release: The 4 Most Common Ways to Access Your Super
There are four primary conditions that allow you to access your super
1. Reaching Age 60 and Retiring
Once you hit 60 and retire, you can access your super. But what exactly counts as “retiring” according to the rules? It’s actually a bit more flexible than you might think!
You need to meet ONE of these criteria:
- Permanently retire from the workforce (and have reached your preservation age)
- Cease a gainful employment arrangement after turning 60
The second choice is cool because it means you could quit one job when you turn 60 and keep working at another job or even start a new one later. You’d still qualify to access your super from that point!.
2. Starting a Transition-to-Retirement Income Stream (60+)
There is a way to start getting money while you are still working once you reach your preservation age, which is now 60 for most people. This is very helpful if you want to cut back on work hours but don’t want your pay to go down.
I’ve seen many clients use this strategy to:
- Work fewer hours but maintain their lifestyle
- Salary sacrifice into super to save tax while using the TRIS to supplement income
- Ease into retirement gradually
3. Turning 65
This is the simplest condition of all! When you turn 65, you can access your super regardless of whether you’re still working or not. No other conditions apply – it’s your money to access as you choose!
4. Death (Super Goes to Beneficiaries)
Ok, obviously this isn’t how YOU would access your super, but when you die, your dependants or nominated beneficiaries will be entitled to receive what’s left of your super.
If the recipients are your dependants (like spouse or child under 18), your super balance can be paid either as a lump sum or an income stream. For non-dependant beneficiaries, it must be paid as a lump sum.
Early Release Conditions: Accessing Super Before Preservation Age
Life doesn’t always go according to plan, and sometimes you might need to access your super early. Here are the circumstances where early access might be possible:
Compassionate Grounds
You might be able to access your super early if you need the money for:
- Medical treatment or transport for yourself or a dependant
- Mortgage payments to prevent losing your home
- Modifications to accommodate a severe disability
- Palliative care expenses
- Funeral expenses for a dependant
The ATO handles these applications, and they’re assessed on a case-by-case basis.
Severe Financial Hardship
If you’re really struggling financially, you might qualify for early access if:
- You’ve received government welfare payments for at least 26 consecutive weeks
- You’re still receiving those payments when you apply
- You can’t pay your immediate family living expenses
If you’ve reached preservation age, the rules are a bit different – you need to have received eligible income support for at least 39 weeks since reaching preservation age and not be gainfully employed.
Terminal Medical Condition
If you’ve been diagnosed with a terminal illness, you can access your super if two medical practitioners (including one specialist) certify that you have an illness likely to result in death within 24 months.
This withdrawal is tax-free, which is one small mercy in a difficult situation.
Temporary or Permanent Incapacity
If you’re temporarily unable to work due to physical or mental ill health, you might be able to access income protection insurance through your super.
For permanent incapacity, you’ll need certification from two medical practitioners that you’re unlikely to ever work again in a job you’re qualified for. This allows access to your super and any TPD insurance benefits.
First Home Super Saver Scheme
If you’re a first home buyer, you can potentially use this scheme to withdraw voluntary super contributions (up to $15,000 per year and $50,000 in total) to help buy your first home.
Temporary Residents Departing Australia
If you’re a temporary resident who’s worked in Australia, you can apply for a Departing Australia Superannuation Payment (DASP) when you leave. Different tax rates apply depending on your visa type.
Super Balance Less Than $200
If your employment has ended and your super balance is less than $200, you can withdraw it. This prevents small accounts from being eroded by fees.
How Can You Access Your Super?
Once you meet a condition of release, you’ve got options for how to receive your super:
Lump Sum
You can take your super as a single payment or multiple lump sums. This might be useful if you have specific large expenses, like paying off a mortgage or funding renovations.
Income Stream (Account-Based Pension)
This is a popular option where your super stays invested while you receive regular payments. Benefits include:
- Potential continued investment growth
- Tax advantages (tax-free for most people over 60)
- Flexibility to change payment amounts (above minimum requirements)
- Ability to withdraw lump sums if needed
Combination of Both
Many retirees choose to take a partial lump sum (maybe to clear debt) and convert the rest to an income stream.
Tax Implications of Accessing Your Super
The tax you’ll pay on your super depends on:
- Your age
- Whether you take it as a lump sum or income stream
- The tax components of your benefit (taxable vs. tax-free)
The good news is, if you’re 60 or over, most super payments are completely tax-free! If you’re between preservation age and 60, you might pay some tax, but usually at concessional rates.
The Age Pension vs. Your Super
It’s important to understand that accessing your super and qualifying for the Age Pension are two separate things:
- Super access: Based on your preservation age (now 60 for most people)
- Age Pension: Currently 67 years for everyone (since July 1, 2023)
This means there might be a gap of several years between when you can access your super and when you become eligible for the Age Pension.
Also, eligibility for the Age Pension depends on:
- Residency status
- Income test
- Assets test
Your super balance will be counted in these tests, potentially affecting your Age Pension entitlement.
Real-Life Example: Meet Jenny
Jenny was born in September 1963, making her preservation age 59. She’s worked for the same company for 25 years but is getting tired of the daily grind.
At 59, Jenny can’t yet access her super (except in special circumstances). But when she turns 60 in September, she’ll have options:
- Fully retire and access all her super
- Quit her current job, access her super, but possibly work elsewhere part-time
- Start a transition-to-retirement pension while reducing her working hours
Jenny decides on option 3 initially, then fully retires at 62. Since she’s over 60, all her super payments are tax-free. However, she won’t be eligible for the Age Pension until she turns 67.
My Final Thoughts
Understanding when you can access your super is crucial for effective retirement planning. While the standard access age is now 60 for most Australians (followed by retirement or changing jobs), there are numerous exceptions and strategies worth exploring.
The best approach? Start planning early! I personally recommend talking to a financial adviser about 5-10 years before you plan to retire. They can help you optimize your super contributions, choose the right access strategy, and potentially save thousands in tax.
Have you started thinking about when you’ll access your super? Do you have questions about any of the conditions of release? Drop me a comment below, and I’ll do my best to help you navigate this important aspect of your financial future!
Quick Summary: When Can I Access My Super?
• At preservation age (60 for most people) if retiring or changing jobs
• Any time after turning 65, regardless of work status
• Through a transition-to-retirement pension from preservation age
• Earlier in special circumstances like financial hardship, medical conditions, or first home purchase
• Tax-free for most people aged 60 and over
Remember, your super is likely one of your biggest assets – make sure you understand your options for accessing it at the right time for YOUR retirement journey!
How your super withdrawals are taxed
Generally, if you’ve met one of the conditions above (from age 60 or 65), the money that you take out of your super account will be tax free.
There are some exceptions though, which are outlined on the Australian Taxation Office (ATO) website.
High-pressure sales tactics could put your super savings at risk. Be super smart and don’t rush to switch.
If someone you don’t know contacts you about your super – hang up. They are not looking out for you. Learn more.
What you can do with your super
There are lots of different choices you can make with your super money. Here’s a brief summary and some links to find out more. You can choose one or any combination of the actions below.
| You can: | What this is | Tax on investment earnings | Can you change your mind? |
| Leave it in super | You can leave your money in super as long as you like and just apply to take some out when you need it. | 15% | Yes. You can choose to do something else with it whenever you like. |
| Start an account-based pension | This type of account pays you a regular income stream. You can also take out bigger amounts when you want to. | 0% | Yes. You can close your account-based pension at any time. Once its been opened, you cant add more money to it – youd need to open another account. |
| Withdraw your super and put it somewhere else | You can take your money out of the super system and invest it in some other way. | At your marginal income tax rate | Maybe not. Once you take your money out of super, there are restrictions on putting it back in. |
| Start an annuity/lifetime income stream | This type of account pays you a regular income for the rest of your life. | Differs across products | Generally not once the cooling off period is finished. |
| Use a Transition to Retirement account | This type of account can be used between the ages of 60 and 65, if you want to start using your super but youre still working. | 15% | Yes, you can generally convert this back to a super account. |
It’s worth knowing that the choices you make with your super money can impact your eligibility for things like the age pension. It’s worthwhile getting some advice before you make a decision on what to do.
If you have a Defined Benefit account that can be turned into a defined benefit pension, get professional advice from your super fund or a financial adviser before you take any action. Defined Benefit accounts work differently; keeping your Defined Benefit account in retirement might give you bigger benefits than the above choices.
At what age can you access your super tax free?
FAQ
At what age can I withdraw my super without paying tax?
If you’re under age 60, the taxable portion of any income payments will generally be taxed at your marginal tax rate (plus Medicare levy). Lump sum withdrawals are tax-free if you’re over age 60.
How much super can I withdraw at 60?
How much super can I withdraw after 60? It depends on whether you’ve retired or you’re still working. Once you’ve turned 60 and retired, you can take out as much as you like from your account. If you leave a job but don’t retire, you can access the super you’ve saved up until that point.
Can I retire at 55 and access my super?
You can access your super: From age 60: If you’re retired or leave a job. You may also open a Transition to Retirement account to get some of your superannuation while you also work. From age 65: Whether you’re still working or not.
Can I access my super at 60 and still work?
Yes. If you work, you can save tax by putting the max possible into your super account and draw out income through a TTR account.
When can I access my superannuation?
Generally, you need to have at least reached what’s called your superannuation preservation age prior to being able to access your super. Your superannuation preservation age is 60. Once you have attained your superannuation preservation age, you will be able to access your super in some form or another.
Can I access my Super at 60?
You can access your super at 60, either through a transition to retirement pension or through a regular super income stream. When you set up through the regular income stream you’ll be asked if you’ve fully retired. If you say yes, but then decide to work again, have a chat with your super fund first. Can I access my super at 65 and still work?.
Can I access my Super If I reach a certain age?
When you reach your preservation age and retire, you can access your super to fund your retirement. You can also access your super: under the transition to retirement rules (if you are eligible), while you continue to work. You don’t have to cash out your super just because you’ve reached a certain age.
When can I access my Super If I retire?
These days, most people who have retired are 60, unless they plan to use a strategy that involves transitioning to retirement. If you wait till you turn 65, not only can you access super, but you can continue to work as well. When can I access my super?.
When can I access my Super if I’m still working?
That is at age 65, you can access your super in the form of a lump sum, pension, or both, even if you’re still working. Depending on your age, you may pay tax on any super you withdraw. But once you turn 60 years old, you can generally access your super tax free.
Can I access my Super early?
Serious medical reasons are one of the few ways available to access super early. What age can I access my super tax-free? You can access your super and enjoy a tax-free super pension income from age 60 if you intend to fully retire, or 65 whether or not you wish to carry on working.