Accessing your super after age 60
Turning 60 is a big milestone when it comes to your superannuation. In particular, the rules around accessing your super in your sixties became much simpler from 01 July 2024, with the preservation age now effectively being 60 for everyone.
That means once you turn 60, you’ve passed the age barrier that previously stopped many people from accessing their super.
That said, while age 60 opens the door, how you can access your super between ages 60 and 65 still depends on your work situation. Let’s break it down.
What does “preservation age” mean now?
If you were born after 30 June 1964, your preservation age is 60. There are no longer different preservation ages depending on your date of birth – everyone is now on the same page.
Once you reach preservation age, you may be able to access your super, but additional rules apply until you turn 65.
Accessing super if you’re still working
If you’re aged between 60 and 65 and haven’t retired, your access to super is limited.
In this situation, you can usually start a Transition to Retirement (TTR) income stream. A TTR income stream allows you to draw a regular income from your super while you continue working.
Some key points about a TTR income stream:
- you must withdraw at least 4% and no more than 10% of your pension balance each year.
- payments you receive are generally tax-free once you’re aged 60 or over.
- your super account does not move into retirement phase, so investment earnings inside the fund are not tax-free.
If you want to withdraw a lump sum or access more than the TTR limits allow, you’ll need to meet another condition of release.
What if you’ve retired?
If you’re aged 60 or over and you stop working, you may meet the retirement condition of release.
To satisfy this condition:
- an arrangement under which you were gainfully employed must have ended, and
- if you were already 60 or older when that job ended, there are no further requirements – your future work plans don’t matter.
If you stopped working before age 60, the rules are stricter. Your super fund trustee must be reasonably satisfied that you don’t intend to work again, either full-time or part-time.
“Part-time” work generally means 10 hours or more per week, so you could still plan to do occasional or casual work of less than 10 hours a week and meet the retirement condition.
Once you meet the retirement condition:
- you can access your super as lump sums.
- you can start an account-based pension.
- your super can move into retirement phase, where investment earnings are tax-free.
What happens at age 65?
Once you turn 65, things become much simpler again. At that point:
- you automatically meet a condition of release.
- you can access your super regardless of whether you’re working.
- you can withdraw lump sums or start a pension without restrictions.
Plan before you withdraw your super
Accessing super is a major financial decision, and the timing and structure of withdrawals can make a big difference.
Before making any moves, it’s important to consider:
- minimum pension withdrawal requirements each year.
- how pensions affect your transfer balance cap.
- potential impacts on your Age Pension entitlements.
- your longer-term retirement income needs.
If you’re aged between 60 and 65 and thinking about accessing your super, getting the right advice early can help you avoid costly mistakes and make the most of your retirement savings.