In Australia, you can typically withdraw an unlimited amount from your superannuation entirely tax-free if you are aged 60 or over and have met a condition of release (such as retirement).
Lump sum withdrawals
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.
How much can I take from my pension tax-free?
At 60, you can generally access all your super if you've permanently retired (stopped working for good), or a portion (up to 10% a year) via a Transition to Retirement (TTR) pension if you're still working part-time, with all payments being tax-free. If you just leave a job but plan to work again, you can access what you've saved, but full access requires genuine retirement or reaching age 65.
On 1 July 2025, the general Transfer Balance Cap — the limit on how much you can move from your super into the retirement phase — will increase from $1.9 million to $2 million.
To retire on $70,000 a year in Australia, a single person typically needs around $1.1 to $1.5 million, while a couple might need about $800,000 to $1.1 million, depending on retirement age (60 vs. 67), home ownership (assuming you own it outright), and the inclusion of the Age Pension. A good rule of thumb is needing roughly 15 to 20 times your desired annual income saved, with figures varying based on your lifestyle (modest vs. comfortable) and when you stop working.
While exact real-time figures vary, estimates from around 2025 suggest approximately 400,000 to over 500,000 Australians held over $1 million in superannuation, with about 2.5% of the population reaching this milestone as of mid-2021, a figure that has likely grown with strong investment returns, though many more hold significant balances and millions are projected to reach this goal by retirement, especially men.
Yes, retiring at 60 with $500,000 in super is possible for a modest lifestyle, especially if you own your home, plan to use the Age Pension, and manage expenses, though it might not cover a "comfortable" (more luxurious) retirement without other income or downsizing; it requires a solid plan, careful budgeting, and often working part-time. For a single person, $500k can support around $50,000-$52,000 per year, while a couple needs more, but you'll likely need to supplement with the Age Pension as your balance decreases.
Fewer people have $1 million in retirement savings than commonly thought, with around 4.6% to 4.7% of U.S. households having $1 million or more in retirement accounts, according to recent Federal Reserve data (2022), though this percentage rises for older age groups, with about 9% of those aged 55-64 reaching that milestone. However, the median retirement savings are much lower (around $88,000-$200,000), showing a large gap between averages and reality, with many retirees having significantly less, notes.
You can access your super: From age 60: If you're retired or leave a job. You can also open a Transition to Retirement account to access some of your super while you're still working. From age 65: Whether you're still working or not.
If you save or invest your lump sum, you might have to pay more tax on the interest or investment growth than you would leaving it in the pension – growth within a pension is tax-free.
First of all, if the lump sum is from a retirement fund or is as a result of redundancy, you need not worry, as this is not taxed. However, if you are still in employment – for example, if the lump sum relates to unused holiday allowance for a job you are still in – this will be taxed according to ATO specifications.
You can take it in slices over a number of tax years if the pension plan you have lets you, but you don't get a new 25% tax-free entitlement each year. If you have defined contribution pension, when you take your tax-free entitlement is up to you. You can take it all at once.
The 3-year bring-forward rule allows Members in an SMSF to contribute more than the Non-Concessional Contribution (after-tax Contributions) cap of $120,000 during a 3-year financial period from 1 July 2024. From 1 July 2021 to 30 June 2024, the non-concessional contributions cap was $110,000.
Yes, you can transfer your superannuation (retirement savings) to your bank account as a lump sum, but only after meeting specific government "conditions of release," usually related to retirement (age 60+) or severe financial hardship, as it's considered a withdrawal, not a regular transfer, and it leaves the super system, impacting future retirement income. You must contact your super fund, log in online or use their forms, and specify you want a lump sum payment to your bank account, but remember it's for retirement or specific early access, not just moving funds around.
You can have a significant amount of super and still get a part Age Pension in Australia, with the cut-off for homeowners being around $714,500 (single) or $1,074,000 (couple), and for non-homeowners, roughly $972,500 (single) or $1,332,000 (couple) as of late 2025. These figures are part of the Assets Test, where higher assets reduce your pension amount, with payments stopping entirely once you exceed these limits.
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Once you have $1 million in assets, you can look seriously at living entirely off the returns of a portfolio. After all, the S&P 500 alone averages 10% returns per year. Setting aside taxes and down-year investment portfolio management, a $1 million index fund could provide $100,000 annually.
Around 80,000 Australians had over $2 million in superannuation as of 2019-2020 data, with estimates suggesting this number might be higher now due to asset growth, potentially affecting around 80,000 people with balances over $3 million by 2025. While most with high balances are older, some young individuals (under 30) also hold over $2 million in super.
The short answer: to retire on $80,000 a year in Australia, you'll need a super balance of roughly between $700,000 and $1.4 million. It's a broad range, and that's because everyone's circumstances are different.
A wealthy retiree in Australia generally has over $1 million in investable assets (excluding the family home), but for a truly high-net-worth individual, this can extend to $5 million or much more, allowing for a very comfortable lifestyle with significant income, travel, and assets, well beyond the ASFA "comfortable" benchmark (around $595k single/$690k couple for basic needs) and often without relying on the Age Pension, notes.
$1 million in super (Australian retirement savings) can last anywhere from 20 to over 30 years, depending heavily on your spending, investment returns, lifestyle (e.g., owning a home), and longevity, but generally supports a modest to comfortable income for 25-35 years, especially with part Age Pension assistance. For a single person, it might support around $70,000/year for 25 years, while for a couple, it could fund a comfortable lifestyle for decades, but higher spending, inflation, or early retirement depletes funds faster.
AustralianSuper is the fund for all Australians. We're Australia's largest super fund1 and manage over $400 billion of retirement savings on behalf of over 3.6 million members2. We use our size, expertise and global reach to help access the best investment opportunities for members.
In New South Wales, one is allowed to make use of their superannuation for assistance on a house deposit. If you do decide to use an existing super to buy your first house, don't worry we'll try to explain each step and help you as much as possible.