Can you get your super at 60 in Australia?

For those born after July 1, 1964, the preservation age is 60, making this a pivotal time for retirement planning. This guide will clarify the rules so you can confidently answer the question, Can you get your super at 60 in Australia?

Quick Summary

Yes, you can access your super at age 60 in Australia by meeting a 'condition of release' like retiring permanently, stopping an employment arrangement, or commencing a Transition to Retirement (TTR) income stream while still working.

Key Points

• Access is conditional: At 60, you can access your super, but only if you meet a specific 'condition of release,' such as retiring or commencing a TTR income stream.

• Retirement definition: For those 60-64, retiring means ceasing an employment arrangement. You can access your super from that job, but new contributions will be preserved if you return to work.

• Tax-free withdrawals: After age 60, all superannuation withdrawals, both lump sums and income streams, are generally tax-free.

• TTR for working seniors: The Transition to Retirement (TTR) strategy allows people aged 60 and over to access a regular income from their super while still working, subject to withdrawal limits.

• Preservation age vs. Age Pension age: Your preservation age (generally 60) is when you can access super, which is different from the Age Pension age (currently 67). Planning for this gap is important.

• Multiple options: At 60, you have the flexibility to take your super as a lump sum, a regular income stream, or a combination of both, depending on your circumstances.

Your Superannuation at 60: The Conditions for Access

Reaching 60 is a significant milestone for Australian superannuation holders. It marks the age at which many can start accessing their retirement savings, but there are specific conditions that must be met. The rules differ depending on whether you plan to retire completely or continue working, and understanding these conditions is essential for making informed financial decisions.

Accessing Super if You Retire

If you have reached your preservation age of 60 and decide to retire, you can access your entire superannuation balance. This means permanently retiring from the workforce. The definition of 'retire' is slightly different depending on your age:

• Between 60 and 64: If you cease an employment arrangement after turning 60, you are considered retired for super purposes. This applies even if you are not retiring permanently. You can access the super accumulated up to that point. If you later return to work, any new super contributions will be 'preserved' until you meet another condition of release or turn 65.
• Aged 65 or over: At this age, you can access all of your super, regardless of whether you are still working or not. No retirement declaration is needed.

The Transition to Retirement (TTR) Strategy

For those not yet ready to fully retire but wishing to access some of their super, a Transition to Retirement (TTR) income stream is an excellent option. Available from age 60, a TTR account allows you to:

• Draw a regular income from your super while continuing to work.
• Supplement your income if you decide to reduce your working hours.
• Employ a tax-effective strategy where you can draw tax-free income while making salary sacrificed contributions to boost your super balance.

Under TTR rules, you can receive a regular income, but you cannot withdraw a lump sum until you meet another condition of release, such as retiring or turning 65. The amount you can withdraw annually from a TTR account is limited to a maximum of 10% of your account balance.

Understanding Conditions of Release

A 'condition of release' is an event that must occur for you to access your super. The most common conditions relevant to someone at age 60 are:

1. Reaching preservation age and retiring: As detailed above, the ability to access your full super balance upon retiring after age 60.
2. Reaching age 65: Provides unrestricted access to your super, whether working or not.
3. Transition to Retirement (TTR): Allows for limited access via an income stream between preservation age and 65, while still working.
4. Other conditions: In limited circumstances, such as severe financial hardship, compassionate grounds, or permanent incapacity, you may be granted early access to your super.

The Tax-Free Advantage of Accessing Super at 60

One of the most significant benefits of accessing your super after age 60 is that withdrawals are generally tax-free. This applies to both income stream payments and lump sum withdrawals, regardless of whether the money comes from a 'taxable' or 'tax-free' component of your super balance. This tax-free status is a major financial advantage that should be considered when planning your retirement strategy.

Superannuation and the Government Age Pension

It is critical to distinguish between your preservation age (the age you can access your super) and the government's Age Pension age. For those born on or after 1 July 1964, the preservation age is 60. However, the Age Pension age is currently 67. This means there is a period of up to seven years where you may need to fund your living expenses entirely from your super, savings, or other income sources before becoming eligible for government assistance. Planning for this gap is a crucial part of your retirement strategy.

Comparison of Access Rules by Age

Condition	Before Age 60	Age 60-64	Age 65+
Work Status	Must meet specific early release conditions (e.g., hardship).	Retired OR using a TTR income stream while working.	Can be working or retired.
Access Type	Limited (e.g., capped hardship amount).	Full lump sum if retired, income stream only for TTR.	Full lump sum, income stream, or combination.
Withdrawal Limits	Varies by condition.	10% maximum annual withdrawal for TTR income streams.	No maximum withdrawal limit.
Tax Implications	Likely taxed, depending on components.	Generally tax-free for all withdrawals.	Generally tax-free for all withdrawals.
New Contributions	Preserved.	New contributions are preserved until you retire again or turn 65.	Access is unrestricted.

Steps to Take at 60

1. Review your super: Get a detailed statement from your super fund to understand your total balance, investment options, and any associated fees.
2. Assess your needs: Determine your retirement goals and what your income needs will be in retirement. Consider how accessing your super at 60 might affect your long-term financial security.
3. Seek professional advice: Consult a financial planner or the Australian Taxation Office to get personalised advice. They can help you model different scenarios and understand the tax implications of your decisions.
4. Consider a Transition to Retirement: If you want to work less but aren't ready to stop completely, a TTR income stream could be the perfect solution. It can provide a regular tax-free income stream to supplement your reduced working wage.
5. Inform your super fund: Once you've made a decision, inform your super fund of your intentions. They will provide the necessary forms to either start a pension or make a lump sum withdrawal, depending on your circumstances.

The Importance of Planning

Your superannuation is a vital asset designed to provide for your retirement years. While turning 60 opens up opportunities to access these funds, it is crucial to approach this with a well-thought-out plan. Prematurely drawing down your super could impact your long-term financial stability. By understanding the rules, exploring all your options, and seeking expert advice, you can ensure your financial choices align with your retirement goals.

For more detailed information on accessing your super, you can visit the official Australian Taxation Office (ATO) website for comprehensive guidance and up-to-date rules on superannuation withdrawals.

Final Thoughts

Ultimately, whether you can get your super at 60 in Australia is not a simple 'yes' or 'no' question. It depends on your individual circumstances, particularly your employment status and intentions. The flexibility offered through retirement or TTR accounts provides Australians with multiple pathways to manage their finances as they transition into retirement. Careful planning is the key to maximising these opportunities and securing your financial future.

Frequently Asked Questions

What is the preservation age in Australia?

The preservation age is the minimum age at which you can access your super, provided you meet a condition of release. For anyone born on or after 1 July 1964, the preservation age is 60.

Can I get my super at 60 if I'm still working?

Yes, if you're 60 and still working, you can access some of your super by starting a Transition to Retirement (TTR) income stream. This provides a regular income while you continue your employment.

What happens if I stop working at 60 but return to work later?

If you cease an employment arrangement after turning 60, you can access the super you've accumulated. If you later return to work, any new super contributions will be preserved until you meet another condition of release or turn 65.

Are super withdrawals taxed after age 60?

No, for most people, superannuation withdrawals, including both lump sums and income streams, are tax-free after reaching age 60.

What is the difference between an account-based pension and a TTR income stream?

An account-based pension is typically for retirees and has no maximum withdrawal limit. A TTR income stream is for those still working and has a maximum annual withdrawal limit of 10% of the account balance.

Does accessing my super at 60 affect my Age Pension eligibility?

Accessing your super at 60 will not impact your eligibility for the Age Pension, as the Age Pension age is different (currently 67). However, your super balance and any income it generates are subject to Centrelink's asset and income tests when you do apply for the Age Pension.

What are the common ways to access super at 60?

The most common ways are to take a lump sum withdrawal upon retirement, start a regular income stream (pension), or begin a Transition to Retirement income stream while still working.