If you are aged 60 years old and not yet ready to retire, you could access some of your super while you're still working by opening a Transition to Retirement (TTR) Income account.
Generally speaking, you can only access your superannuation as a lump sum after turning 60 if you meet a condition of release, such as retiring from the workforce, leaving a job or waiting until you turn 65.
Turning 65 is a condition of release for superannuation, which means you can access your super regardless of if you're working or not. You only need to be retired if you want to access your super before you turn 65.
If you are aged between 60 and 64 your Super Benefit is preserved until your "Retirement". There are absolutely no restrictions to accessing your Super Benefit when aged between 60 and 64 after you are "Retired". In this case your Super Benefit can be accessed as either a Pension or Lump Sum withdrawal.
You can access your super when you: reach your preservation age and retire. reach your preservation age and choose to begin a transition to retirement income stream while you are still working. are 65 years old (even if you have not retired).
There are absolutely no restrictions to accessing your Super Benefit when aged between 60 and 64 after you are retired. There are two ways you can access your Super; either as a lump-sum payment or as a pension.
The ASFA Retirement Standard Explainer says a comfortable retirement lifestyle would need $640,000 in super for a couple, or $545,000 for a single person.
You may be able to take your superannuation as a lump sum payment when you retire. This is usually tax-free from age 60.
Super is a great way to save money for your retirement. It is generally taxed at a lower rate than your regular income. You typically pay 15% tax on your super contributions, and your withdrawals are tax-free if you're 60 or older. The investment earnings on your super are also only taxed at 15%.
If you're aged 60 or over and withdraw a lump sum: You don't pay any tax when you withdraw from a taxed super fund. You may pay tax if you withdraw from an untaxed super fund, such as a public sector fund.
You can access your super, without restrictions, even if you're still working. Rules for accessing your super: You can access your super as long as you've permanently retired. If you end an employment arrangement on or after age 60, you can also access the super you've earned up until then.
Can I access super at 65 and keep working? Yes. You can access your super when you turn 65 regardless of whether you're still working.
You can withdraw your super if you're. 65 years or over, whether you keep working or not. 60 or over and change employers or temporarily stop working. Under 60 and have permanently stopped working, and you've met your preservation age.
Yes, you can access your super at 60 and still work full-time. You don't even need to be aged 65 or retired. To do this, you simply use your super to commence a transition to retirement pension.
You can access your super if you're aged 60 and over and you stop working, even if you subsequently get another job with another employer. As mentioned earlier, super payments are generally tax free once you turn 60. Learn more about accessing your super by reaching age 60 and ceasing employment.
The minimum amount that can be withdrawn is $1,000 and the maximum amount is $10,000. If your super balance is less than $1,000 you can withdraw up to your remaining balance after tax.
In such an instance, there is no restriction on how much of your super you can access. However, you should be mindful of any lump sum withdrawal tax, as explained below. There are some instances, depending on your employment history, where part of your super balance includes unrestricted non-preserved components.
Tax on withdrawals of taxable component
Your marginal tax rate or 32%, whichever is lower – unless the sum of the untaxed elements of all super lump sum benefits received under the super plan exceeds the untaxed plan cap. Amounts above the cap will be taxed at the top marginal rate.
Many people start using their super savings as soon as they retire and can access their super, but you don't have to. If you have other income sources or savings to live on, you could leave your savings in your super account.
Assume, for example, you will need 65 per cent of your pre-retirement income, so if you earn $50,000 now, you might need $32,500 in retirement.
If you withdraw money from your super fund, you must tell Centrelink within 14 days.
So looking at the table, you can see that a 60-year old male will need a lump sum of almost $500,000 to provide an annual income in retirement of $42,000 for 20 years. These calculations are based on a 20-year time frame because the approximate life expectancy for Australian males is 84 years and 88 for females.
In the case of early retirement, a benefit is reduced 5/9 of one percent for each month before normal retirement age, up to 36 months. If the number of months exceeds 36, then the benefit is further reduced 5/12 of one percent per month.
However, on the plus side 60-year-olds can withdraw from retirement accounts without penalty. Early retirees may also benefit from lower healthcare costs, improved ability to work part-time and a longer and more enjoyable retirement.