In this guide
- 1. When can I access my super savings?
- 2. Can I still make contributions into my super if I retire before age 60?
- 3. What are the tax implications of retiring before age 60?
- 4. What are the options for withdrawing my super when I turn 60?
- 5. How long does my retirement income need to last?
- 6. Can I start a transition-to-retirement income stream before age 60?
- 7. Can I get the Age Pension if I retire before age 60?
- 8. Can I get a health card or seniors card if I retire before age 60?
- 9. How much super do I need to retire before 60?
For many of us, retiring early is the big dream. Spending your time the way you want and not having to answer to anyone but yourself.
If that’s your plan, it’s important to ensure you understand the rules on accessing your super, how big your nest egg needs to be, the tax implications of retiring and any financial assistance you may be able to receive.
To help you take the leap into life after work, SuperGuide has put together a list of some of the common questions asked by people thinking about retiring before access to super is available.
1. When can I access my super savings?
Unless you meet special early release conditions (see below) you need to have reached your preservation age to get your hands on the money in your super account.
As the preservation age is currently 60, if you plan to retire earlier than this you will need sources of income other than super to support yourself for the period between your retirement and turning 60.
Your preservation age is not the same as the age you can apply to receive the Age Pension, which is now 67. Your preservation age only relates to accessing the benefits in your super account.
If you have retired and don’t intend to return to work, you can gain access to your entire super balance as soon as you celebrate your 60th birthday.
If you do plan to return to work, you could consider opening a transition-to-retirement pension when you turn 60 to gain access to up to 10% of your account balance per year.
When you turn 65, you can access your entire super balance even if you have returned to work or plan to work in future.
Learn about accessing super between 60 and 65.
Need to know – early release
There are strict rules governing your ability to access your super before you reach your preservation age.
Accessing your money is only permitted in very limited circumstances such as if you are terminally ill, permanently incapacitated for work, suffering financial hardship while receiving Centrelink income support, or can meet the criteria for a release on compassionate grounds (such as to prevent foreclosure on your home or pay medical expenses).
Learn about the all the conditions of release.
Super tip
If you are receiving payments from Centrelink, check before you access your super. It may affect your entitlement to a benefit and also the amount you receive.
To find out more about government benefits, contact Services Australia on 13 23 00 or visit the Services Australia website.
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