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- 1. When can I access my super savings?
- 2. Can I access my super at 60 and still work?
- 3. Can I still make contributions into my super if I retire at 60?
- 4. What are the options for withdrawing my super benefit?
- 5. What are the tax implications of retiring at age 60?
- 6. What is the average super account balance at age 60?
- 7. What is my life expectancy at age 60?
- 8. Can I get the Age Pension if I retire at 60?
- 9. Can I get a health card if I retire at 60?
- 10. Can I get a state Seniors Card if I retire at 60?
- 11. Can I start a transition-to-retirement income stream at 60?
- 12. How much super do I need to retire at 60?
For many people, when it comes to planning their retirement, age 60 sounds like a good time to leave the workforce.
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 you might pay 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 at 60.
1. When can I access my super savings?
In the super world, to access your super benefits at age 60 you must have:
- Reached your preservation age
- Met a condition of release
- Ceased gainful employment
- No intention of becoming gainfully employed again.
These rules mean once you reach age 60 and stop working, it’s fairly straightforward to access your super benefits. Meeting the condition of release bit is easy, as permanently retiring from the workforce is a condition of release.
If you withdraw your super benefits once you reach 60, most people pay no tax on their retirement savings. This is a big change from withdrawing before age 60, where the rules mean tax is payable on some parts of your super benefit (see Question 5).
Remember, if you retire at 60 and withdraw your super savings, you miss out on the benefits of compound interest and the tax benefits available if you were to leave your savings within the super system for longer. This can have a significant impact on how much income you have in later years.
2. Can I access my super at 60 and still work?
One of the main conditions of release allowing you to access your super benefits at age 60 is ceasing employment. In most cases, this means it’s not possible to access your super at age 60 and continue working with the same employer you left to meet the condition of release.
You can, however, get another full- or part-time job with a new employer. Or if you have two jobs, you only need to cease one employment arrangement and you can continue in your other job.
To access your super benefits at age 60, you will need to make a written declaration to your super fund you have a ‘genuine intention to retire’. This means you plan to leave the workforce permanently and don’t expect to work again more than ten hours per week.
You can also start a transition-to-retirement income stream (TTR or TRIS) with your super benefits while you continue working (see Question 11).
3. Can I still make contributions into my super if I retire at 60?
In the past, once you retired from the workforce the contributions you could make into your super account were fairly limited. As you were not employed, your super fund was unable to accept most types of contributions.
In recent years this has changed, with new rules applying from 1 July 2022 that break the traditional link between employment and the ability to contribute to your account. If you are:
- Aged under 75, you are free to make most types of contributions (such as non-concessional contributions, salary-sacrifice and downsizer contributions) into your super account without having to worry about being employed and meeting the requirements of a work test.
The only exception to this is tax-deductible super contributions. From 1 July 2022, once you reach age 67 you must be ‘gainfully employed’ for at least 40 hours in a period of 30 consecutive days during the financial year in which you wish to make your tax-deductible super contribution.
- Aged 75 and over, you can no longer make contributions into your super account. (The only exceptions are non-concessional contributions made in the 28 days following the month in which you turn 75, downsizer contributions, and mandated super contributions, such as Super Guarantee contributions your employer is required to make on your behalf.)
4. What are the options for withdrawing my super benefit?
When you withdraw your super savings at retirement, you can choose to take a lump sum, an income stream or a combination of both:
- Income stream (super pension or annuity) – If you decide to take a super income stream, you will receive a series of regular payments from your super fund. These must be paid at least annually and must meet the minimum annual payment rules set by the government.
- Learn about minimum pension drawdown rates.
- Lump sum – This is a single payment that withdraws some or all of your super. If you take a lump sum the money is no longer within the super system and if you invest it, any investment returns received on the money will not be taxed as super savings. This means the concessional tax rate of 15% on your super account’s investment earnings will no longer apply. Instead, your investment returns will be taxed at your marginal tax rate, which could be as high as 45% (plus the Medicare levy).
5. What are the tax implications of retiring at age 60?
Super withdrawals after age 60 are generally free of any tax.
If you are aged 60 or over and decide to take a lump sum, all your lump sum benefits are tax free.
If you are aged 60 or over and decide to take a super pension, all your pension payments are tax free UNLESS you are a member of a small number of defined benefit super funds, or you receive a defined benefit pension over a certain limit. In these two situations, you will pay some tax on your super pension, but this generally only affects public servants.
These two exceptions only affect people who choose to take a super pension AND are:
- Members of an untaxed super scheme (usually a public sector fund)
- Receiving a private or public defined benefit pension of more than $106,250 a year (2022–23).
6. What is the average super account balance at age 60?
According to Association of Superannuation Funds of Australia research using ATO figures, in June 2019 (the latest available data), the average super account balance for males aged 60 to 64 was $359,870, while for females the average was a bit lower at $289,179.
Before you get too worried you don’t have enough saved to retire, it’s worth remembering the average account balance is relatively high because it’s the total of all the super balances in that age group, divided by the number of account holders. If you have a small number of people in your age group with very high account balances, it can push up the average balance.
A better figure to look at is the median account balance in your age group. The median is the middle account balance of an age group, so 50% of the age group have a higher balance and 50% of the age group have a lower account balance.
As you can see in the table below, there is a significant gap between the average and median balance for women and men around retirement age.
Average and median super account balance June 2019
| Average super account balance | Median* super account balance | |
|---|---|---|
Males (age 60–64) | $359,870 | $178,808 |
Females (age 60–64) | $289,179 | $137,051 |
Source: ASFA Developments in account balances: Superannuation account balances for various demographic groups, March 2022 using ATO data.
7. What is my life expectancy at age 60?
Life expectancy is a statistical measure estimating how long a typical person of a specific age and sex is likely to live. It’s based on your year of birth and gender, but does not consider your circumstances, such as your personal health, family history, diet or lifestyle.
This means it’s a population estimate of how long a typical person is likely to live, not a prediction of how long you will live.
The estimates below are an average life expectancy for an Australian male and female aged 60 based on national statistics, without taking into account any personal factors such as your health or family history.
Estimated life expectancy at age 60
| Expected remaining years of life | Life expectancy | |
|---|---|---|
| Male | 24 years and 0 months | 84 years and 0 months |
| Female | 26 years and 11 months | 86 years and 11 months |
Source: 2015–17 Australian Life Tables, Australian Government Actuary. The Australian Life Tables are released every five years, with the next report with updated life expectancy figures to be released in 2024.
8. Can I get the Age Pension if I retire at 60?
To be eligible for the Age Pension, you must have reached the current Age Pension eligibility age, which from 1 July 2021 is 66 years and 6 months. People born on or after 1 January 1957 will need to wait until they turn 67, starting from 1 July 2023.
In addition to the age requirement, whether you are eligible for an Age Pension depends on you being able to satisfy the Age Pension assets test, income test and residency requirements.
Use our Age Pension calculator to estimate how much you could be eligible to receive.
9. Can I get a health card if I retire at 60?
If you retire at age 60, you are ineligible for the Commonwealth Seniors Health Card (CSHC). This concession card gives you access to cheaper health care, medications and, potentially, government services.
To qualify for a CSHC, you must have reached your Age Pension eligibility age, which depends on your date of birth. This is currently 66 years and 6 months, but is being increased progressively to age 67 from 1 July 2023.
10. Can I get a state Seniors Card if I retire at 60?
Congratulations, if you retire at age 60 you may be eligible for a state Seniors Card in most states and territories.
The eligibility rules for a Seniors Card are different in each state and territory (and they change regularly), but the general rule is you need to be aged at least 60 to apply for a state Seniors Card.
It’s worth noting many states allow you to apply for your card up to three months before you turn 60.
Briefly, the age requirements in each state and territory are:
| State | Eligible age for Seniors Card |
|---|---|
| Australian Capital Territory | 60 or over |
| NSW | 60 or over |
| Northern Territory | 60 or over |
| Queensland | 60 or over with government concession card 65 or over without government concession card |
| South Australia | 60 or over |
| Tasmania | 60 or over |
| Victoria | 60 or over |
| Western Australia | 64 or over |
Note: Residency and work test rules also apply when you apply for a Seniors Card.
11. Can I start a transition-to-retirement income stream at 60?
A transition-to-retirement income stream (TTR or TRIS) is a pension paid to you from the money you have saved in your super account while you are still working. In some circumstances it can be a good way to scale back your working hours and start enjoying your transition into retirement without reducing your income.
Starting a TTR can also allow you to salary sacrifice into your super account to save tax, while using your TTR income stream to supplement your salary so you can maintain your current lifestyle.
You are eligible to start a TTR if you have reached your preservation age, are still working and are a member of an accumulation super fund (90% of Australians are in these funds.)
12. How much super do I need to retire at 60?
When you retire at 60, you could be spending 25 years or more in retirement, so you’ll need to create a retirement income stream designed to last a long time.
If you retire at age 60, the amount of super you will need to fund your retirement income depends on many factors, including:
- How many years you will spend in retirement
- Whether you are a couple or single
- How much you plan to spend each year
- Whether you own your home
- What assets or income you have outside super
- How much your investments earn
- Whether you are eligible for the Age Pension
- How much super you want to leave your dependants.
Check out how much super you’ll need to retire.
To help you work out how much super you may need if you retire at 60, we have put together tables for both couples and singles using figures generated from ASIC’s MoneySmart retirement planner calculator.
There are six different scenarios showing the income generated from different super balances ranging from $500,000 at retirement through to $3.4 million (combined for a couple).
6 super balance scenarios for couples and singles
Scenario 1: Income generated from a $500,000 retirement super balance
Couple: Retiring at 60
| Money lasting until age | Return on savings | ||||||
|---|---|---|---|---|---|---|---|
| 2% | 3% | 4% | 5% | 6% | 7% | 8% | |
| 85 | $44,745 | $45,964 | $47,330 | $48,838 | $50,470 | $52,267 | $54,233 |
| 90 | $43,666 | $44,910 | $45,910 | $47,376 | $49,014 | $50,809 | $52,762 |
| 95 | $42,743 | $43,740 | $44,931 | $46,335 | $47,945 | $49,759 | $51,753 |
| 100 | $42,165 | $43,066 | $44,165 | $45,506 | $47,116 | $48,982 | $51,017 |
* Assumptions for the calculations in the tables are listed at the end of the article.
Single: Retiring at 60
| Money lasting until age | Return on savings | ||||||
|---|---|---|---|---|---|---|---|
| 2% | 3% | 4% | 5% | 6% | 7% | 8% | |
| 85 | $34,624 | $36,132 | $37,753 | $39,519 | $41,358 | $43,256 | $45,348 |
| 90 | $32,850 | $34,212 | $35,733 | $37,371 | $39,117 | $40,961 | $42,929 |
| 95 | $31,611 | $32,788 | $34,199 | $35,755 | $37,426 | $39,161 | $41,059 |
| 100 | $30,709 | $31,751 | $32,983 | $34,368 | $35,971 | $37,737 | $39,550 |
* Assumptions for the calculations in the tables are listed at the end of the article.
Scenario 2: Income generated from a $750,000 retirement super balance
Couple: Retiring at 60
| Money lasting until age | Return on savings | ||||||
|---|---|---|---|---|---|---|---|
| 2% | 3% | 4% | 5% | 6% | 7% | 8% | |
| 85 | $52,071 | $54,341 | $56,839 | $59,504 | $62,322 | $65,252 | $68,383 |
| 90 | $49,429 | $51,507 | $53,831 | $56,350 | $58,976 | $61,856 | $64,852 |
| 95 | $47,604 | $49,453 | $51,584 | $53,977 | $56,550 | $59,256 | $62,132 |
| 100 | $46,283 | $47,889 | $49,784 | $51,943 | $54,386 | $57,125 | $59,904 |
* Assumptions for the calculations in the tables are listed at the end of the article.
Single: Retiring at 60
| Money lasting until age | Return on savings | ||||||
|---|---|---|---|---|---|---|---|
| 2% | 3% | 4% | 5% | 6% | 7% | 8% | |
| 85 | $40,344 | $42,391 | $44,575 | $46,964 | $49,539 | $52,274 | $55,290 |
| 90 | $36,812 | $38,622 | $40,601 | $42,757 | $45,128 | $47,679 | $50,528 |
| 95 | $34,274 | $35,439 | $35,768 | $39,731 | $41,907 | $44,314 | $47,028 |
| 100 | $32,484 | $33,753 | $35,364 | $37,293 | $39,427 | $41,694 | $44,324 |
* Assumptions for the calculations in the tables are listed at the end of the article.
Scenario 3: Income generated from a $1 million retirement super balance
Couple: Retiring at 60
| Money lasting until age | Return on savings | ||||||
|---|---|---|---|---|---|---|---|
| 2% | 3% | 4% | 5% | 6% | 7% | 8% | |
| 85 | $58,363 | $61,204 | $64,246 | $67,516 | $70,964 | $74,750 | $78,739 |
| 90 | $53,872 | $56,424 | $59,164 | $62,213 | $65,473 | $68,970 | $72,777 |
| 95 | $50,739 | $52,918 | $55,532 | $58,344 | $61,364 | $64,674 | $68,291 |
| 100 | $48,573 | $50,289 | $52,410 | $55,089 | $58,108 | $61,304 | $64,756 |
* Assumptions for the calculations in the tables are listed at the end of the article.
Single: Retiring at 60
| Money lasting until age | Return on savings | ||||||
|---|---|---|---|---|---|---|---|
| 2% | 3% | 4% | 5% | 6% | 7% | 8% | |
| 85 | $44,752 | $47,440 | $50,354 | $53,691 | $57,370 | $61,460 | $65,966 |
| 90 | $39,762 | $42,126 | $44,761 | $47,765 | $51,251 | $55,246 | $59,760 |
| 95 | $36,420 | $38,472 | $40,839 | $43,556 | $46,825 | $50,670 | $55,232 |
| 100 | $34,126 | $35,719 | $37,817 | $40,381 | $43,457 | $47,220 | $51,803 |
* Assumptions for the calculations in the tables are listed at the end of the article.
Scenario 4: Income generated from a $1.7 million retirement super balance
Couple: Retiring at 60
| Money lasting until age | Return on savings | ||||||
|---|---|---|---|---|---|---|---|
| 2% | 3% | 4% | 5% | 6% | 7% | 8% | |
| 85 | $71,183 | $75,928 | $81,171 | $87,150 | $93,787 | $101,164 | $109,346 |
| 90 | $62,734 | $66,754 | $71,537 | $76,999 | $83,344 | $90,616 | $98,883 |
| 95 | $57,265 | $60,626 | $64,726 | $69,710 | $75,748 | $82,947 | $91,390 |
| 100 | $53,503 | $56,264 | $59,857 | $64,391 | $70,021 | $77,118 | $85,765 |
* Assumptions for the calculations in the tables are listed at the end of the article.
Single: Retiring at 60
| Money lasting until age | Return on savings | ||||||
|---|---|---|---|---|---|---|---|
| 2% | 3% | 4% | 5% | 6% | 7% | 8% | |
| 85 | $59,395 | $64,733 | $71,058 | $78,159 | $86,040 | $94,669 | $103,989 |
| 90 | $51,156 | $55,513 | $61,014 | $67,729 | $75,613 | $84,423 | $94,051 |
| 95 | $45,920 | $49,532 | $54,213 | $60,272 | $68,030 | $77,054 | $87,064 |
| 100 | $42,200 | $45,372 | $49,459 | $54,796 | $62,126 | $71,479 | $81,962 |
* Assumptions for the calculations in the tables are listed at the end of the article.
Scenario 5: Income generated from a $2.5 million retirement super
Since 1 July 2021, there has been a $1.7 million limit on the amount you can transfer into a super account in retirement phase. The $1.7 million transfer balance cap (TBC) applies to individuals, so we have not included singles in this or the following scenario. A couple could have up to $3.4 million combined (up to $1.7 million in each partner’s individual account).
Couple: Retiring at 60
| Money lasting until age | Return on savings | ||||||
|---|---|---|---|---|---|---|---|
| 85 | $88,283 | $96,154 | $105,327 | $115,618 | $127,116 | $139,674 | $153,263 |
| 90 | $76,126 | $82,561 | $90,521 | $100,337 | $111,728 | $124,553 | $138,657 |
| 95 | $68,471 | $73,795 | $80,544 | $89,368 | $100,611 | $113,731 | $128,351 |
| 100 | $62,995 | $67,650 | $73,567 | $81,354 | $91,962 | $105,488 | $120,761 |
* Assumptions for the calculations in the tables are listed at the end of the article.
Scenario 6: Income generated from a $3.4 million retirement super balance
Couple: Retiring at 60
| Money lasting until age | Return on savings | ||||||
|---|---|---|---|---|---|---|---|
| 2% | 3% | 4% | 5% | 6% | 7% | 8% | |
| 85 | $110,869 | $122,377 | $136,044 | $151,321 | $168,078 | $186,138 | $205,440 |
| 90 | $94,053 | $103,666 | $115,648 | $130,419 | $147,346 | $165,933 | $185,995 |
| 95 | $83,132 | $91,188 | $101,616 | $115,147 | $132,222 | $151,536 | $172,357 |
| 100 | $75,814 | $82,761 | $91,805 | $103,837 | $119,985 | $140,481 | $162,426 |
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