Super is designed to be locked away until retirement, and the rules for getting it out are strict. The good news is they’ve become simpler: anyone born after 30 June 1964 has the same preservation age of 60.
The main conditions of release
| Situation | Can you access super? |
|---|---|
| Aged 60 to 64 and retired | Yes, all of it |
| Aged 60 to 64 and you leave a job (even if you keep working elsewhere) | Yes, the amount accrued up to leaving that job |
| Aged 60 to 64 and still working | Only through a transition to retirement income stream |
| Aged 65 or over | Yes, whether you’re working or not |
| Under 60 | Only in limited circumstances (below) |
Early access: the limited exceptions
- Severe financial hardship: receiving eligible government income support for a set period, with limits on the amount.
- Compassionate grounds: paying for specific medical treatment, palliative care, or to stop the bank selling your home, approved by the ATO.
- Terminal medical condition or permanent incapacity.
- Temporary residents leaving Australia permanently (taxed heavily).
- First Home Super Saver scheme: releasing eligible voluntary contributions to buy a first home.
- Balances under $200 when you leave a job.
Anyone offering to get your super out early for any other reason is running a scam, and the tax penalties fall on you.
How withdrawals are taxed
From 60, lump sums and pension payments from a taxed super fund are generally tax-free. Before 60, the taxable part of a withdrawal can be taxed, depending on your age and the type of payment. Some public sector (untaxed) schemes are treated differently.
What you can do once you have access
| Option | How it works | Tax on earnings |
|---|---|---|
| Leave it in super | Withdraw as and when you need it | 15% |
| Account-based pension | Regular income with minimum yearly drawdowns, plus lump sums when you need them | 0% |
| Transition to retirement pension | Income while still working, from 60 | 15% |
| Annuity or lifetime income stream | Guaranteed income, often for life | Varies |
| Take it out | Invest it elsewhere or spend it | Your marginal rate on future earnings |
Moving super into an account-based pension is the most common choice, because investment earnings then aren’t taxed. Your choices also affect the Age Pension assets and income tests, so it’s worth getting advice.
Retiring at 60 vs 67
For a 40-year-old on $100,000 with $150,000 in super, stopping at 60 means about $556,000 in today’s dollars, compared with $770,000 at 67. And it must last seven years longer. That doesn’t make 60 impossible, but early retirement usually needs savings outside super too. Run your own numbers in the super calculator.
Frequently asked questions
What is my preservation age?
If you were born after 30 June 1964, it’s 60. That now covers almost everyone still working.
Can I access super if I’m still working at 60?
Only through a transition to retirement income stream, unless you leave an employer, in which case the super built up with that employer becomes available.
Is super taxed when I withdraw it after 60?
From a taxed fund, generally no. Lump sums and pension payments are tax-free after 60.
