For many people 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 simple guide answering common questions asked by people who plan to retire at 60.
1. When can I access my super savings?
Once you reach age 60, it’s fairly straightforward to access your super benefits if you are retired from the workforce, as that is a condition of release.
In the super world, to access your super benefits at age 60 you must:
- Have reached your preservation age
- Have ceased gainful employment
- Not have any intention of becoming gainfully employed again.
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 tax is payable on some parts of your super benefit (see later in this article).
Remember, if you retire at 60 and withdraw your super savings, you miss out on the benefits of compound interest. 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 for accessing your super benefits at age 60 is ceasing employment.
In most cases, that means it’s not possible to access your super at age 60 and continue working with the 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 (TTRs or TRISs) with your super benefits while you’re continue working. For more about TTRs, see the section later in this article.
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3. Can I still make contributions into my super if I retire at 60?
Once you cease gainful employment, the contributions you can make into your account are much more limited and depend on your age:
- Aged 64 and under, you can only make non-concessional (after-tax) contributions into your super account up to the annual contribution cap ($100,000 in 2020/21).
- Aged 65 and over, you can only make downsizer contributions (up to $300,000 in 2020/21).
4. What are the options for withdrawing my super benefit?
When you withdraw your super savings at retirement, you can choose to take either a lump sum or an income stream:
- 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 minimum annual payment rules.
- 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 return 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 tax free.
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 $100,000 a year (in 2020/21).
6. What is the average super account balance at age 60?
According to Association of Superannuation Funds of Australia research[i], in 2016/17 (the latest available data) the average super account balance for males aged 60 to 64 was $336,360, while for females the average was a bit lower at $277,880.
Unsurprisingly, the average balance for those on higher incomes tends to be higher. In 2016/17, the average super balance for a male aged 60 to 64 in the $180,000 plus tax bracket was $1,224,954. For females in the same tax bracket, the average was $1,323,120.
For Aussies aged 60 to 64 in the $37,001 to $87,000 tax bracket, the averages were $280,468 for males and $268,910 for females.
Average and median super account balance 2016/17
Average super account balance | Median* super account balance | |
---|---|---|
Males (age 60–64) |
$336,360 |
$154,453 |
Females (age 60–64) |
$277,880 |
$122,848 |
7. What is my life expectancy at age 60?
Life expectancy is a statistical measure that estimates 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.
That means it’s an 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 someone age 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 |
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 is 66 years for anyone born between 1 January 1954 and 30 June 1955.
Age Pension ages from 1 July 2019 are listed in the table:
Date of birth |
Age Pension eligibility age |
Date that Age Pension age changes |
---|---|---|
Born between 1 January 1954 and 30 June 1955 |
66 years |
1 July 2019 |
Born between 1 July 1955 and 31 December 1956 |
66 years and 6 months |
1 July 2021 |
Born from 1 January 1957 onwards |
67 years |
1 July 2023 |
Source: Department of Social Services
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
- satisfy the Age Pension income test
- meet Australian residency requirements.
9. Can I get a health card if I retire at 60?
If you retire at age 60, unfortunately 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 (see table above). This is progressively being increased 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 are 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. Residency and work test rules also apply.
It’s worth noting many states allow you to apply for your card up to three months before you turn 60.
Briefly, the requirements in each state and territory in relation to your age are:
State |
Eligible age for Seniors Card |
---|---|
Australian Capital Territory |
62 or over (From July 2020 eligibility age will be lowered to 60) |
NSW |
60 or over |
Northern Territory |
60 or over |
Queensland |
60 or over with government concession card |
Tasmania |
60 or over |
Victoria |
60 or over |
Western Australia |
63 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 (TTR or TRIS) is a pension income stream from your super account that you draw down on while you are still working. It can be a way to scale back your working hours and start enjoying your transition into retirement.
Starting a TTR can also allow you to salary sacrifice into super to save tax, while using your TTR to supplement your salary so you can maintain your 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 or 30 years in retirement, so you’ll need to create a retirement income stream that lasts 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.
To help you get started working out how much super you 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 $3.2 million (combined for a couple).
If you want to calculate the income using your own circumstances, try SuperGuide’s Super to income reckoner, which has nearly 9,000 options you can use.
Scenario 1: Income generated from a $500,000 retirement super balance transferred into a super pension account
Couple: Retiring at 60
Money lasting until age |
Eligible for Age Pension? |
Return on savings |
||||||
---|---|---|---|---|---|---|---|---|
2% |
3% |
4% |
5% |
6% |
7% |
8% |
||
85 |
Yes |
$16,224 |
$18,425 |
$20,870 |
$23,462 |
$26,251 |
$29,164 |
$32,252 |
No |
$43,986 |
$45,367 |
$46,901 |
$48,568 |
$50,390 |
$52,354 |
$54,472 |
|
90 |
Yes |
$13,371 |
$15,399 |
$17,804 |
$20,478 |
$23,336 |
$26,369 |
$29,563 |
No |
$42,637 |
$43,912 |
$45,393 |
$47,046 |
$48,852 |
$50,855 |
$52,992 |
|
95 |
Yes |
$11,389 |
$13,231 |
$15,506 |
$18,252 |
$21,265 |
$24,386 |
$27,755 |
No |
$41,678 |
$42,870 |
$44,291 |
$45,934 |
$47,755 |
$49,792 |
$51,971 |
|
100 |
Yes |
$9,949 |
$11,607 |
$13,691 |
$16,346 |
$19,656 |
$22,986 |
$26,454 |
No |
$40,978 |
$42,087 |
$43,438 |
$45,057 |
$46,940 |
$48,970 |
$51,261 |
* Assumptions for the calculations in the tables are listed at the end of the article.
Single: Retiring at 60
Money lasting until age |
Eligible for Age Pension? |
Return on savings |
||||||
---|---|---|---|---|---|---|---|---|
2% |
3% |
4% |
5% |
6% |
7% |
8% |
||
85 |
Yes |
$34,559 |
$36,179 |
$37,909 |
$39,747 |
$41,689 |
$43,737 |
$45,854 |
No |
$16,224 |
$18,439 |
$20,871 |
$23,474 |
$26,224 |
$29,154 |
$32,251 |
|
90 |
Yes |
$32,606 |
$34,079 |
$35,716 |
$37,462 |
$39,323 |
$41,269 |
$43,372 |
No |
$13,369 |
$15,405 |
$17,804 |
$20,469 |
$23,336 |
$26,378 |
$29,575 |
|
95 |
Yes |
$31,203 |
$32,557 |
$34,078 |
$35,758 |
$37,547 |
$39,452 |
$41,475 |
No |
$11,390 |
$13,231 |
$15,485 |
$18,253 |
$21,267 |
$24,402 |
$27,755 |
|
100 |
Yes |
$30,159 |
$31,363 |
$32,747 |
$34,365 |
$36,110 |
$37,971 |
$39,954 |
No |
$9,944 |
$11,607 |
$13,695 |
$16,346 |
$19,654 |
$22,966 |
$26,451 |
* 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 transferred into a super pension account
Couple: Retiring at 60
Money lasting until age |
Eligible for Age Pension? |
Return on savings |
||||||
---|---|---|---|---|---|---|---|---|
2% |
3% |
4% |
5% |
6% |
7% |
8% |
||
85 |
Yes |
$52,063 |
$54,539 |
$57,163 |
$59,957 |
$62,928 |
$66,042 |
$69,271 |
No |
$24,348 |
$27,647 |
$31,258 |
$35,173 |
$39,372 |
$43,761 |
$48,341 |
|
90 |
Yes |
$49,156 |
$51,452 |
$53,943 |
$56,614 |
$59,452 |
$62,451 |
$65,638 |
No |
$20,061 |
$23,108 |
$26,704 |
$30,723 |
$34,993 |
$39,562 |
$44,361 |
|
95 |
Yes |
$47,102 |
$49,156 |
$51,538 |
$54,107 |
$56,841 |
$59,751 |
$62,840 |
No |
$17,082 |
$19,838 |
$23,260 |
$27,389 |
$31,876 |
$36,624 |
$41,633 |
|
100 |
Yes |
$45,532 |
$47,396 |
$49,547 |
$52,023 |
$54,760 |
$57,573 |
$60,557 |
No |
$14,923 |
$17,410 |
$20,544 |
$24,519 |
$29,476 |
$34,491 |
$39,621 |
* Assumptions for the calculations in the tables are listed at the end of the article.
Single: Retiring at 60
Money lasting until age |
Eligible for Age Pension? |
Return on savings |
||||||
---|---|---|---|---|---|---|---|---|
2% |
3% |
4% |
5% |
6% |
7% |
8% |
||
85 |
Yes |
$40,564 |
$42,759 |
$45,165 |
$47,738 |
$50,457 |
$53,464 |
$56,717 |
No |
$24,337 |
$27,657 |
$31,308 |
$35,183 |
$39,362 |
$43,752 |
$48,358 |
|
90 |
Yes |
$36,851 |
$38,831 |
$40,955 |
$43,361 |
$45,951 |
$48,773 |
$52,000 |
No |
$20,061 |
$23,108 |
$26,701 |
$30,725 |
$35,000 |
$39,558 |
$44,322 |
|
95 |
Yes |
$34,223 |
$36,040 |
$38,021 |
$40,205 |
$42,648 |
$45,420 |
$48,542 |
No |
$17,081 |
$19,833 |
$23,260 |
$27,389 |
$31,876 |
$36,625 |
$41,631 |
|
100 |
Yes |
$32,114 |
$33,768 |
$35,693 |
$37,806 |
$40,139 |
$42,759 |
$45,857 |
No |
$14,921 |
$17,406 |
$20,544 |
$24,518 |
$29,486 |
$34,489 |
$39,663 |
* 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 transferred into a super pension account
Couple: Retiring at 60
Money lasting until age |
Eligible for Age Pension? |
Return on savings |
||||||
---|---|---|---|---|---|---|---|---|
2% |
3% |
4% |
5% |
6% |
7% |
8% |
||
85 |
Yes |
$58,558 |
$61,654 |
$64,925 |
$68,428 |
$72,162 |
$76,162 |
$80,430 |
No |
$32,449 |
$36,863 |
$41,666 |
$46,955 |
$52,494 |
$58,356 |
$64,495 |
|
90 |
Yes |
$53,857 |
$56,634 |
$59,643 |
$62,908 |
$66,355 |
$70,245 |
$74,355 |
No |
$26,750 |
$30,812 |
$35,609 |
$40,959 |
$46,660 |
$52,752 |
$59,168 |
|
95 |
Yes |
$50,418 |
$53,014 |
$55,824 |
$58,863 |
$62,172 |
$65,831 |
$69,766 |
No |
$22,776 |
$26,465 |
$31,002 |
$36,518 |
$42,536 |
$48,839 |
$55,503 |
|
100 |
Yes |
$47,847 |
$49,993 |
$52,715 |
$55,746 |
$58,912 |
$62,401 |
$66,240 |
No |
$19,898 |
$23,212 |
$27,390 |
$32,689 |
$39,315 |
$45,996 |
$52,907 |
* Assumptions for the calculations in the tables are listed at the end of the article.
Single: Retiring at 60
Money lasting until age |
Eligible for Age Pension? |
Return on savings |
||||||
---|---|---|---|---|---|---|---|---|
2% |
3% |
4% |
5% |
6% |
7% |
8% |
||
85 |
Yes |
$45,539 |
$48,529 |
$51,854 |
$55,569 |
$59,718 |
$64,251 |
$69,256 |
No |
$32,452 |
$36,881 |
$41,747 |
$46,957 |
$52,505 |
$58,356 |
$64,486 |
|
90 |
Yes |
$40,318 |
$42,977 |
$46,044 |
$49,557 |
$53,550 |
$58,137 |
$63,264 |
No |
$26,746 |
$30,812 |
$35,609 |
$40,967 |
$46,654 |
$52,754 |
$59,168 |
|
95 |
Yes |
$36,784 |
$39,140 |
$41,933 |
$45,220 |
$49,078 |
$53,687 |
$58,973 |
No |
$22,777 |
$26,460 |
$31,011 |
$36,508 |
$42,494 |
$48,843 |
$55,453 |
|
100 |
Yes |
$34,146 |
$36,265 |
$38,830 |
$41,935 |
$45,701 |
$50,326 |
$55,765 |
No |
$19,898 |
$23,214 |
$27,388 |
$32,683 |
$39,315 |
$45,987 |
$52,845 |
* Assumptions for the calculations in the tables are listed at the end of the article.
Scenario 4: Income generated from a $1.6 million retirement super balance transferred into a super pension account
Couple: Retiring at 60
Money lasting until age |
Eligible for Age Pension? |
Return on savings |
||||||
---|---|---|---|---|---|---|---|---|
2% |
3% |
4% |
5% |
6% |
7% |
8% |
||
85 |
Yes |
$70,915 |
$75,829 |
$81,264 |
$87,368 |
$94,142 |
$101,642 |
$109,841 |
No |
$51,950 |
$59,006 |
$66,791 |
$75,140 |
$84,006 |
$93,381 |
$103,210 |
|
90 |
Yes |
$62,482 |
$66,858 |
$71,905 |
$77,682 |
$84,285 |
$91,854 |
$100,326 |
No |
$42,799 |
$49,300 |
$56,972 |
$65,550 |
$74,661 |
$84,402 |
$94,658 |
|
95 |
Yes |
$56,875 |
$60,669 |
$65,236 |
$70,732 |
$77,183 |
$84,849 |
$93,588 |
No |
$36,449 |
$42,348 |
$49,609 |
$58,430 |
$68,004 |
$78,149 |
$88,771 |
|
100 |
Yes |
$52,737 |
$56,133 |
$60,326 |
$65,463 |
$71,791 |
$79,491 |
$88,575 |
No |
$31,830 |
$37,141 |
$43,826 |
$52,308 |
$62,897 |
$73,591 |
$84,652 |
* Assumptions for the calculations in the tables are listed at the end of the article.
Single: Retiring at 60
Money lasting until age |
Eligible for Age Pension? |
Return on savings |
||||||
---|---|---|---|---|---|---|---|---|
2% |
3% |
4% |
5% |
6% |
7% |
8% |
||
85 |
Yes |
$59,946 |
$65,693 |
$72,160 |
$79,442 |
$86,552 |
$96,019 |
$105,261 |
No |
$51,951 |
$58,966 |
$66,793 |
$75,139 |
$83,954 |
$93,355 |
$103,164 |
|
90 |
Yes |
$51,401 |
$56,371 |
$62,518 |
$69,695 |
$77,753 |
$86,687 |
$96,350 |
No |
$42,798 |
$49,300 |
$56,973 |
$65,549 |
$74,677 |
$84,403 |
$94,653 |
|
95 |
Yes |
$45,957 |
$50,196 |
$55,639 |
$62,630 |
$70,853 |
$80,063 |
$90,154 |
No |
$36,448 |
$42,348 |
$49,613 |
$58,431 |
$68,060 |
$78,149 |
$88,813 |
|
100 |
Yes |
$42,171 |
$45,828 |
$50,649 |
$57,174 |
$65,593 |
$75,228 |
$85,702 |
No |
$31,841 |
$37,140 |
$43,826 |
$52,303 |
$62,901 |
$73,596 |
$84,653 |
* Assumptions for the calculations in the tables are listed at the end of the article.
Scenario 5: Income generated from a $2 million retirement super balance transferred into a super pension account
Couple: Retiring at 60
* Assumptions for the calculations in the tables are listed at the end of the article.
Money lasting until age |
Eligible for Age Pension? |
Return on savings |
||||||
---|---|---|---|---|---|---|---|---|
2% |
3% |
4% |
5% |
6% |
7% |
8% |
||
85 |
Yes |
$80,052 |
$86,759 |
$94,300 |
$102,721 |
$112,088 |
$122,362 |
$133,432 |
No |
$64,935 |
$73,758 |
$83,469 |
$93,869 |
$105,011 |
$116,725 |
$128,983 |
|
90 |
Yes |
$69,446 |
$75,260 |
$82,340 |
$90,533 |
$99,855 |
$110,449 |
$121,959 |
No |
$53,492 |
$61,620 |
$71,218 |
$81,937 |
$93,351 |
$105,515 |
$118,285 |
|
95 |
Yes |
$62,611 |
$67,565 |
$73,842 |
$81,763 |
$91,162 |
$101,956 |
$114,004 |
No |
$45,560 |
$52,935 |
$62,020 |
$73,034 |
$85,014 |
$97,668 |
$111,040 |
|
100 |
Yes |
$57,848 |
$62,244 |
$67,734 |
$75,063 |
$84,427 |
$95,651 |
$108,182 |
No |
$39,801 |
$46,427 |
$54,781 |
$65,375 |
$78,622 |
$91,951 |
$105,789 |
* Assumptions for the calculations in the tables are listed at the end of the article.
Single: Retiring at 60
Money lasting until age |
Eligible for Age Pension? |
Return on savings |
||||||
---|---|---|---|---|---|---|---|---|
2% |
3% |
4% |
5% |
6% |
7% |
8% |
||
85 |
Yes |
$69,093 |
$75,964 |
$83,996 |
$93,023 |
$103,051 |
$113,852 |
$125,419 |
No |
$61,976 |
$70,058 |
$79,224 |
$89,284 |
$100,157 |
$111,738 |
$123,812 |
|
90 |
Yes |
$57,303 |
$63,421 |
$70,950 |
$79,945 |
$90,261 |
$101,755 |
$114,066 |
No |
$49,552 |
$56,672 |
$65,562 |
$75,965 |
$87,441 |
$99,764 |
$112,686 |
|
95 |
Yes |
$49,732 |
$54,637 |
$61,162 |
$69,869 |
$80,617 |
$92,784 |
$105,973 |
No |
$41,113 |
$47,301 |
$55,091 |
$65,238 |
$77,599 |
$90,951 |
$104,820 |
|
100 |
Yes |
$44,566 |
$48,683 |
$54,031 |
$61,552 |
$72,277 |
$85,719 |
$99,959 |
No |
$35,108 |
$40,467 |
$47,264 |
$56,030 |
$68,165 |
$83,818 |
$98,953 |
* Assumptions for the calculations in the tables are listed at the end of the article.
Scenario 6: Income generated from a $3.2 million retirement super balance transferred into a super pension account
Since 1 July 2017 there has been a $1.6 million limit on the amount you can transfer into a super account in pension phase. The $1.6 million transfer balance cap applies to individuals, which means a couple could have up to $3.2 million in individual accounts.
Couple: Retiring at 60
Money lasting until age |
Eligible for Age Pension? |
Return on savings |
||||||
---|---|---|---|---|---|---|---|---|
2% |
3% |
4% |
5% |
6% |
7% |
8% |
||
85 |
Yes |
$112,693 |
$125,154 |
$139,164 |
$154,660 |
$171,451 |
$189,376 |
$208,443 |
No |
$103,898 |
$118,010 |
$133,585 |
$150,270 |
$168,025 |
$186,764 |
$206,429 |
|
90 |
Yes |
$95,461 |
$106,301 |
$119,733 |
$135,286 |
$152,377 |
$171,076 |
$190,967 |
No |
$85,597 |
$98,595 |
$113,949 |
$131,094 |
$148,951 |
$168,834 |
$189,361 |
|
95 |
Yes |
$84,080 |
$93,467 |
$105,646 |
$121,121 |
$138,852 |
$158,173 |
$178,955 |
No |
$72,890 |
$84,676 |
$99,224 |
$116,855 |
$136,122 |
$156,258 |
$177,586 |
|
100 |
Yes |
$76,329 |
$84,460 |
$95,263 |
$109,808 |
$128,469 |
$148,725 |
$170,276 |
No |
$63,682 |
$74,284 |
$87,646 |
$104,608 |
$125,797 |
$147,179 |
$169,266 |
Assumptions used to calculate the tables
- You own your own home and have personal assets of $25,000 or less.
- These calculations do not allow any investment assets outside super. Note: The amount of investment assets you have can greatly affect the amount of Age Pension you are eligible to receive.
- Inflation costs are a 2% rise per year in cost of living plus a 1.2% additional rise per year in living standards.
- All returns are net of fees.
- Results are in today’s dollars.
- We recommend you also review the assumptions that MoneySmart list below their calculator.
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