“When can I finally access my super?”. If you’re in your 50s or 60s, it’s a question you’ve probably asked — or Googled.
It’s also one of the most important things to get right. It’s not just about when you can withdraw your super, but how you do it. Your approach can influence your tax bill, Age Pension entitlements, and financial peace of mind.
In this guide, you’ll learn the key rules around accessing your super, how to choose the right withdrawal method, and what to consider so that you can make the most of your retirement savings.
If you would prefer to watch, our video covers the topic:
When can I access my super?
Outside of specific circumstances, the determining factor of when you can begin to access your super is your age.
Specifically, your preservation age.
In Australia, your preservation age used to vary between 55 and 60, depending on your date of birth. But for anyone born after 1 July 1964, the preservation age is now 60.
Once you’ve reached your preservation age, you may be able to access some of your super through a transition to retirement (TTR) pension.
However, to access your super in full without restrictions, you also need to meet a condition of release. This refers to a specific event, such as retiring or leaving a job, that allows you to legally access your super.
Let’s break it down by the different age groups.
Superannuation withdrawal rules (by age group)
There are three specific age groups to be aware of when it comes to accessing your super, each with their own set of rules and eligibility criteria.
Under age 60
Early access before age 60 is allowed only in limited, exceptional cases:
- severe financial hardship
- compassionate grounds (e.g., medical treatment expenses, death or funeral expenses, to prevent foreclosure or forced sale of your home)
- terminal medical condition, or permanent/ temporary incapacity
- permanent departure from Australia (for temporary visa holders only).
Age 60-64
From age 60 to 64, you can access your super if you:
- leave a job – even if you’re planning to work elsewhere, you can access the super you’ve accumulated up to the time you left that employer
- permanently retire – if you stop working and don’t intend to return to work for more than 10 hours per week, you can access your full super. Your super fund will likely require you to sign a declaration confirming this intention.
- use a transition to retirement (TTR) pension strategy while you’re still working – a TTR pension allows you to access part of your super while you scale back work hours or boost your retirement savings.
Want to know if a TTR strategy is right for you? Read about how you can make the most of your super with 10 Retirement Planning Strategies, including the TTR pension approach.
Age 65+
Once you turn 65, your super becomes fully accessible — even if you’re still working.
At this age, you automatically meet a condition of release, so no further criteria need to be satisfied.
However, if you move your super into a pension account (also known as an account-based pension), you’ll need to withdraw a minimum amount each financial year.
With the key rules covered, let’s explore the different ways you can withdraw your super.
2 common super withdrawal methods explained
There are two main ways to draw down your super:
- as a regular income stream
- as a lump sum.
Let’s unpack each one below.
Option 1: income stream (account-based pension)
An account-based pension is the most common way retirees use their super. It allows you to draw a regular income from your super while the rest stays invested.
Pros of an income stream:
- Flexible access – You choose how much and how often you draw down (within the minimum drawdown rules), with the option to make one-off withdrawals as needed.
- Ongoing growth potential – Your super remains invested while you make withdrawals, with flexibility to choose how your balance is allocated across different investment options. Additionally, after age 60, any investment earnings are generally tax-free.
- Regular income with tax benefits – You receive steady payments in retirement, and after age 60, those income payments are also tax-free.
- Potential Centrelink income test advantages – By strategically managing your income stream withdrawals and timing your super access, you may reduce your assessable income and assets for Centrelink. This can help increase your Age Pension entitlement, especially when combined with exempt spending (like home renovations).
Cons of an income stream:
- Withdrawal limits – You must withdraw a minimum set percentage of your super balance each year, and if using a TTR pension, there’s also a maximum cap.
- Transfer balance cap restrictions – There’s a limit on how much you can move into a retirement income stream.
An account-based pension is a good fit for people who are:
- seeking ongoing, flexible income in retirement
- wanting to keep their super invested while drawing down gradually
- exploring ways to structure their income that may help maximise Centrelink entitlements (with professional advice).
Other types of income streams
While account-based pensions are the most common, there are a couple of other income stream options to be aware of:
- Transition to retirement (TTR) pension – A TTR pension gives you limited access to your super after preservation age, while still working. It’s a way to reduce working hours, boost your income, or keep building your retirement savings.
- Defined benefit pensions – Mostly used by government employees, defined benefit pensions provide guaranteed payments based on your years of service and your final salary, rather than your super balance.
- Annuity Income Stream – An annuity income stream turns your super into guaranteed income for a fixed period of time, or the rest of your life.
Option 2: lump sum withdrawal
Instead of drawing a regular income, you may be able to withdraw some or all of your super in one or more lump sum payments. This might be preferable if you have major financial needs or you’d like greater control over how the money is used.
Pros of a lump sum withdrawal:
- Access to significant funds – You can withdraw a large amount of money you might not otherwise have, to cover major costs or seize opportunities as they arise.
- Complete control – You decide how much to withdraw and when (once eligible), with the freedom to use or invest the funds outside of super however you choose.Note: if you’re under 65 and still working, access may be limited unless you’ve met another condition of release.
- Centrelink or tax strategy potential – Lump sum withdrawals from super can be strategically used to optimise Centrelink entitlements and tax outcomes. For instance, withdrawing and recontributing funds can increase the tax-free component of your super. However, the effectiveness of these strategies depends on your personal circumstances, and professional advice is recommended.
Cons of a lump sum withdrawal:
- Longevity risk – By taking out a large one-off withdrawal now, you increase the chances of running out of savings later in retirement.
- Lost growth and tax advantages – Withdrawn funds stop earning investment returns and miss out on tax-free earnings available inside a pension account after age 60.
Lump-sum withdrawals are best suited to people who need to:
- pay off large debts, such as mortgages or personal loans
- cover major one-off expenses, like medical bills or emergencies
- reallocate savings into other investments outside of super.
Important considerations before accessing your superannuation
Accessing your superannuation is a big step, and it’s important to plan ahead. A strategic approach can help your savings last through retirement and maximise any government entitlements. It also ensures you keep the right insurances in place and supports better long-term decisions.
Let’s walk through what you should consider before accessing your super.
How much super do I need to retire?
Before you start withdrawing your super, it’s worth taking a moment to consider how much you’ll actually need to retire comfortably.
By your 50s or 60s, you probably have a clearer sense of the lifestyle you want in retirement and what it might cost. This is an ideal time to start building a retirement budget.
Retirement projections can also help by estimating how long your savings may last, based on your current balance and expected future outcomes. A financial adviser can then identify strategies to stretch your savings further and reduce the risk of running out.
For a deeper look at the key factors that shape your retirement income needs, read our article How Much Super Do You Need to Retire Comfortably In Australia?.
Super and the Age Pension
Once you reach Age Pension age (currently 67), Centrelink applies both an assets test and an income test to determine your eligibility and payment rate.
These tests assess various financial resources, including your super:
- accumulation account balance – counted under the assets test if you’re over Age Pension age
- account-based pension – assessed under both the income and assets tests
- withdrawn funds – treated as assets (e.g. cash in the bank) and may still count if gifted, sold or transferred for less than market value within gifting limits.
Some assets are exempt, such as withdrawn funds spent on eligible home improvements.
If you retire without considering these tests work, you could unintentionally structure your finances in a way that limits your Age Pension entitlements.
Example: Centrelink’s asset test
Meet Dakota.
Dakota is a single homeowner with $700,000 in super and other investments.
The current asset threshold for a part Age Pension (for single homeowners) is $697,000. Since Dakota’s assets are just $3,000 over this limit, she wouldn’t qualify for the Age Pension.
But with a bit of planning, she could use some of her savings to renovate her home. For example, she might modernise the bathroom or introduce smart technologies.
Because money spent on renovating her primary residence is exempt from the asset test, this would reduce her assessable assets below the threshold (assuming the improvements cost over $3,000), making her eligible for a part Age Pension.
Example: Centrelink’s income test
Meet Steve.
Steve is 68 and retired. He’s moved his super into an account-based pension, which pays him $1,000 per fortnight. He also earns $200 per fortnight from casual consulting work.
Under Centrelink’s income test, a portion of his super pension payments is assessed, and all of his employment income is counted (after Work Bonus concessions are applied).
Because of this, Steve’s combined assessable income may reduce his Age Pension entitlement.
With the help of a financial adviser, Steve could consider lowering his pension payments to the minimum drawdown amount. They could also look at how his investments are structured.
By reducing his assessable income, Steve may be able to receive higher Age Pension payments without significantly changing his lifestyle or overall cash flow.
Example: Strategically timing and structuring an income stream
Meet Sara.
Sara is 67. She has about $600,000 in super in an accumulation account and is about to retire.
If Sara immediately converts her entire super balance into an income stream (an account-based pension), the full $600,000 will be assessed under Centrelink’s asset and income tests (using ‘deeming rules’).
However, Sara decides to withdraw a portion of her super as a lump sum first to pay off her mortgage and renovate her home. (Note: Money spent on renovating her primary is exempt from the asset test.)
Then, she transfers the remaining balance (say $400,000) into an account-based pension, setting up regular payments just enough to cover her essential living costs.
By reducing her assessable assets and carefully managing her income stream payments (to keep assessable income lower), Sara lowers her assessable income and assets under Centrelink rules.
Sara may now qualify for a higher Age Pension payment than if she’d immediately converted her entire super balance into an income stream.
Insurance held through super
Before you start withdrawing your super, it’s important to check whether you hold insurance through your account. Many super funds automatically provide death, total and permanent disability (TPD), and/or income protection cover.
Withdrawing or transferring your super (particularly when opening a pension account) can unintentionally cancel your insurance. This might happen if your account balance drops too low to cover ongoing premiums.
To avoid losing valuable protection, always check your cover before making changes to your super.
Consulting a financial adviser
Accessing your super is more than just a withdrawal — it’s a strategic financial move.
A financial adviser can help you:
- decide between an income stream or lump sum (or a combination) to suit your lifestyle and income needs
- understand how your age and super account affect the tax you’ll pay on withdrawals
- structure your withdrawals to support Age Pension eligibility, and protect any insurance held in super
- time and tailor your withdrawals to help your savings last longer.
Before accessing your super, make sure you speak to a financial adviser. They can help you avoid costly mistakes and feel more confident about your next steps.
Final takeaway: accessing your super isn’t just about when — it’s about how
Turning 60 is just the beginning. What you do next with your super can shape your retirement income and lifestyle for years to come.
Before making any moves, take a moment to revisit the key steps:
- understand when you’re eligible to withdraw, based on your age and circumstances
- know how super withdrawal methods work, including how lump sums and income streams are taxed
- consider the broader implications — for longevity, Age Pension eligibility, insurance, and tax
- get professional advice to personalise your retirement strategy and make the most of your super.
If it all feels a bit too much, we’re here to guide you. At Toro Wealth, we specialise in working with Australians in their 50s and 60s to optimise their financial position, make informed decisions, and approach retirement with confidence. Book an initial consultation with us today.
FAQs on accessing your super
When it comes to accessing your super, having the right information makes all the difference. Below, we address some of the most common queries we hear from Australians approaching retirement.
What is my preservation age?
Your preservation age is the age you must first reach before you can access your superannuation. It used to vary between 55 and 60, depending on your date of birth. However, for anyone born after July 1, 1964, the preservation age is now 60.
How much super can I withdraw after 60?
After age 60 (which is the preservation age for most people), how much super you can withdraw depends on your circumstances:
- If you permanently retire, you can access your entire super balance
- If you leave a job, you can access the super you’ve accumulated up to that point (even if you plan to work again).
- If you’re still working, you may be able to access part of your super by starting a TTR pension.
Once you turn 65, your super is fully accessible without any conditions, regardless of your work status.
How can I withdraw my superannuation?
You can withdraw your superannuation as either a regular income stream (i.e., an account-based pension), a lump sum, or a mix of both. The right option depends on your circumstances and goals.
Some people also access super gradually through a TTR strategy.
When can I access my super tax free?
In most cases, you can access your super tax-free from age 60, provided you’ve met a condition of release like retiring (with no intention of returning to work), leaving a job, or turning 65.
An exception is if your superannuation balance includes taxable components. In that case, you could be subject to tax on your withdrawals, even if you’ve reached age 60.
Can I access my super at 60 and still work?
Yes — you can access your super after turning 60 and continuing to work, if you leave a job. This counts as a condition of release, even if you start a new job later.
You’ll be able to withdraw the super you’ve accumulated up until you left that role. However, any new super contributions made in a new employment arrangement will remain preserved (or locked away) until you meet another condition of release (such as retiring permanently, leaving that new role, or turning 65).
If you haven’t left a job or retired, but still want to access some of your super, you may be eligible to start a TTR pension. A TTR pension allows limited withdrawals while you keep working, once you’ve reached your preservation age.
How can I access my super early?
Early access to super is allowed in limited, exceptional cases:
- severe financial hardship
- compassionate grounds (e.g., medical treatment expenses, death or funeral expenses, to prevent foreclosure or forced sale of your home)
- terminal medical condition, or permanent/ temporary incapacity
- permanent departure from Australia (for temporary visa holders only).
Outside of these circumstances, you must reach your preservation age and meet a condition of release to access your super.
Can I return to work after accessing my super?
Yes — you can return to work after accessing your super, as long as you met a valid condition of release at the time you withdrew it.
For example:
- If you leave a job after turning 60, you can access the super you’ve accumulated up to that point, even if you take up another job later.
- If you permanently retire after reaching your preservation age, you’re allowed to return to limited work (less than 10 hours per week) without breaching the rules.
- If you genuinely intend to retire permanently and later change your mind, returning to work is allowed.
Note: any new super contributions made in your new role will be preserved until you meet another condition of release (like leaving that job or turning 65).
Sources:
- https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/withdrawing-and-using-your-super/early-access-to-super/access-on-compassionate-grounds/access-on-compassionate-grounds-what-you-need-to-know
- https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/temporary-residents-and-superannuation/departing-australia-superannuation-payment-dasp
- https://moneysmart.gov.au/retirement-income-sources/account-based-pensions#:~:text=An%20account%2Dbased%20pension%20(sometimes,and%20frequency%20of%20your%20payments
- https://qsuper.qld.gov.au/our-products/superannuation/defined-benefit-account/faqs
- https://www.servicesaustralia.gov.au/what-gifts-we-include-income-and-assets-tests?context=22526
- https://www.servicesaustralia.gov.au/income?context=22526
