Accessing Your Super (Before & After Retirement)
You can usually access super once you reach preservation age and retire, cease an employment arrangement after 60, or turn 65. Earlier access is only allowed under strict conditions, such as permanent incapacity or the First Home Super Saver Scheme. After 60, most benefits from taxed funds are usually tax-free.
Introduction
Superannuation can feel like future you’s money, right up until you start thinking about reducing work, retiring, or funding a big life change. Then the question becomes: When can I access it, and what’s the smartest way to do it?
In most cases, you can access your super once you reach your preservation age and retire, or when you turn 65, even if you’re still working. There’s also a middle ground for people easing into retirement. You may be able to draw an income stream while continuing to work.
Early access before preservation age is possible, but only in strict, limited circumstances and under formal rules. It’s not a quick cash option, and the penalties for dodgy schemes are serious.
What is Preservation Age?
Your preservation age is the earliest age you can generally access super under retirement conditions. It’s based on your date of birth (not your super balance, job type, or what your mates are doing).
Here’s the current preservation age table:
| 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 1 July 1964 | 60 |
A quick heads-up: Preservation age is not the Age Pension age. They’re different systems with different rules.
Pre-Retirement Super Access
If you’ve hit preservation age but you’re not ready to stop working, you may still be able to access some of your super through an approach designed for people transitioning into retirement.
Transition to Retirement (TTR) Income Stream
A Transition to Retirement Income Stream (TRIS) can supplement your income if you reduce your working hours, or if you want extra cash flow while you keep working. It’s commonly used in the lead-up to retirement when income needs to stay steady.
Flexibility
A TRIS is often used to support a gradual move into retirement. You keep earning work income, and you add a controlled super income stream on top. Done properly, this can help people balance lifestyle goals while staying within the rules.
Taxation
Investment earnings in super depend on the type of account. MoneySmart notes that a Transition to Retirement account has investment earnings taxed at 15% (not the 0% rate that typically applies once you start an account-based pension in retirement phase).
Post-Retirement Super Access
Once you reach preservation age, you still need to meet a condition of release to access your super in full. Most commonly, that’s retirement.
Age 60 to 64
Generally, you can access super once you’ve retired after reaching preservation age. MoneySmart also notes that from age 60, you can access your super if you’re retired or you leave a job. This is one reason timing your work changes is important.
Age 65
At 65, you can access your super even if you haven’t retired. That doesn’t mean you must withdraw it. It simply means the door is open.
Early Super Access Rules (Special Circumstances)
In limited and strict circumstances, you may be allowed to withdraw some or all of your super before reaching preservation age. The ATO lists certain categories for early super access.
Important: James Hayes does not assist with early super access.
Compassionate Grounds
This may include unpaid medical treatment, medical transport, disability-related home or vehicle modifications, palliative care, funeral expenses for a dependant, or preventing foreclosure or forced sale of your home (strict eligibility criteria apply).
Severe Financial Hardship
You may qualify if you’ve been receiving eligible government income support for a required period and can’t meet reasonable and immediate living expenses. The ATO also outlines limits in some scenarios (for example, minimum and maximum withdrawal amounts and frequency rules).
Tax note: The ATO states there are no special tax rates for withdrawals due to severe financial hardship. If you’re under 60, it’s generally taxed between 17% and 22%. If you’re 60 or older, you generally won’t be taxed unless an untaxed element is included.
Medical Conditions
Early access may apply for a terminal medical condition (with certification requirements). The ATO notes the fund must pay it as a lump sum, and outlines when it may be tax-free. Access can also apply for temporary incapacity (often linked to insurance in super) or permanent incapacity (sometimes called a disability super benefit).
Small Balances (Under $200)
The ATO notes you may be able to access super if your employment is terminated and your balance is under $200, or if you locate a lost super account under $200. It also notes no tax is payable on accessing super accounts with balances under $200.
Scam Awareness
If someone contacts you offering early access, the ATO insists you don’t share personal info and don’t click links. Early access scams and identity misuse are common pressure points around super.
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Withdrawal Options and Tax Implications
Once you’re eligible to access super, you typically choose how you want to receive it.
Lump Sums
You may be able to take one or more lump sum payments if your fund allows it. This is often used to clear debt, renovate, help family, or build a cash buffer.
Account-Based Pension
An account-based pension converts your super into regular payments. MoneySmart says investment earnings in an account-based pension are taxed at 0%. (Minimum balances and product rules can apply depending on your fund.)
Tax Benefits
MoneySmart notes withdrawals are generally tax-free once you’ve met a condition of release from age 60 or once you’ve turned 65, with some exceptions outlined by the ATO. The ATO also notes that if you’re 60 or older, your super payments may be tax-free, depending on the source and components.
Considerations Before Accessing Super
Before pulling money out, it’s worth stepping back and checking how the move affects the rest of your plan. MoneySmart is clear that super decisions can flow through to other areas of your finances.
Age Pension
Your withdrawal strategy can change your eligibility for benefits like the Age Pension. It’s not just about how much you have – it’s how it’s held and what you do with it.
Insurance
Many Australians hold life, TPD, or income protection inside super. Changing accounts or drawing down can affect cover. If insurance matters to you (or your family), check before moving funds.
High-Pressure Sales and Scams
MoneySmart warns against rushing into changes off the back of high-pressure calls or messages. The ATO also warns that scam contacts about early release are a major risk area.
Conclusion
Accessing super isn’t hard once you know the rules. The tricky part is deciding how much, when, and in what format, so you don’t accidentally create a tax bill, lose insurance cover, or knock your retirement income off course.
If you’re a Sutherland Shire or Sydney CBD wealth builder, pre-retiree, or retiree and you’d like to pressure-test your options, book a 15-minute no-obligation call with James Hayes. You’ll walk away with clarity on what’s possible, what to avoid, and what to tackle next.
FAQs
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You can usually access your super when you reach your preservation age and retire, start a transition-to-retirement income stream after preservation age, cease an employment arrangement after 60, or turn 65 regardless of work status. Earlier access only occurs under specific conditions such as permanent incapacity, terminal illness, or other legislated pathways.
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Preservation age is the minimum age at which you can usually access super, currently between 55 and 60 depending on date of birth, with people born after 1 July 1964 having a preservation age of 60. Age Pension age is generally 67 and determines eligibility for government pension benefits, not fund withdrawals.
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Once you reach preservation age, you may start a transition-to-retirement income stream while still working. Payments must be between 4% and 10% of the TRIS balance each year, and earnings remain taxed at up to 15% inside the fund. It can supplement part-time work but requires careful tax and contribution planning.
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Not always. If your super is in a standard taxed fund, most lump sums and account-based pension payments after 60 are tax-free in your hands. However, payments from certain untaxed public sector schemes, or specific components such as untaxed elements, may still incur tax. Defined benefit pensions can also be treated differently.
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Generally, no. Super is preserved for retirement. Limited early-release options exist for severe financial hardship or specified compassionate grounds, but they require strict eligibility and evidence, and are not general debt-consolidation tools. James Hayes does not assist with debt consolidation or promotional early-access schemes using super to manage consumer debts.
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The First Home Super Saver Scheme allows eligible first home buyers to withdraw certain voluntary contributions, plus associated earnings, for a deposit. You can release up to $15,000 of eligible contributions per year and $50,000 total. Released FHSS amounts are taxable but receive a 30% FHSS tax offset to reduce the final tax.
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Once you turn 65, your preserved super becomes fully accessible even if you keep working. You can take lump sums, start an account-based pension, or leave money in accumulation. Employer contributions may still be made while you work. Tax outcomes depend on fund type and payment structure, but many benefits are tax-free.
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It depends on your income needs, tax position, Centrelink prospects, and estate planning goals. Lump sums can clear specific debts or fund one-off spending but reduce future investment income. Account-based pensions provide structured, tax-effective income and keep money invested. Most retirees use a combination, structured within an overall retirement and estate plan.
Disclaimer
The information in this article is provided as a general guide only. It does not constitute personal financial advice and should not be relied upon as such. Readers should seek advice from a licensed financial adviser before making any financial decisions. James Hayes and his associated entities accept no responsibility or liability for any loss, damage, or action taken in reliance on the information contained in this article. Links to third-party websites are provided for reference purposes only. We do not endorse or guarantee the accuracy of their content.