In this guide
- 1. When can I access my super?
- 2. Can I access my super at 65 and still work?
- 3. Can I still make contributions into my super if I retire at 65?
- 4. What are the options for withdrawing my super benefit?
- 5. What are the tax implications of retiring at 65?
- 6. How long does my retirement income need to last?
- 7. Can I get the Age Pension if I retire at 65?
- 8. Can I get a health card or seniors card if I retire at 65?
- 9. Can I start a transition-to-retirement income stream at 65?
- 10. How much super do I need to retire at 65?
For many of us, blowing out the birthday candles at age 65 means it’s retirement time or close to it.
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 eligible for.
To help you take the leap into life after work, SuperGuide has put together a list of common questions asked by people retiring at age 65.
1. When can I access my super?
In the super world, turning 65 is a condition of release; at this age you can access all your super even if you continue working.
Once you apply to access your super, you can generally choose to withdraw it as an income stream, lump sum or a combination of the two.
While it may be tempting to take the money and run, if you retire at 65 and withdraw your super you miss out on the future benefits of compounding investment returns and the tax concessions available within the super system. This can have a significant impact on how much income you have in later years.
2. Can I access my super at 65 and still work?
Yes.
You can generally access your super when you turn 65 regardless of whether you are still working or not. Some older funds (including defined benefit accounts) have additional rules, so get in touch with your provider to find out their requirements.
You also have the option to leave your super where it is for as long as you wish. It is not compulsory to start making withdrawals.
3. Can I still make contributions into my super if I retire at 65?
Yes.
While you are aged under 75 you are free to make contributions into your super account.
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 to make personal tax-deductible super contributions.
When you turn 75, most super contributions are no longer permitted, although you have 28 days following the end of the month you turned 75 to make any last-minute additions to your account. The only contributions permitted after this time has passed are:
- Compulsory contributions from your employer (if you are still working)
- Downsizer contributions from the sale of your home.
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 the two:
- Income stream (super pension or annuity) – If you decide to take an income stream, you will receive a series of regular payments from your super fund. The benefits of super income streams include convenient regular income and tax-free investment earnings.
- Lump sum – This is a single payment to withdraw some or all your super. Once you take a lump sum the money is no longer within the super system; if you invest it, any investment returns received on the money will no longer be taxed at super’s concessional tax rate of 15% (or 0% in retirement phase). 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 65?
Super withdrawals after age 60 are tax free unless you are a member of an untaxed super fund or receive a defined benefit pension above the annual defined benefit income cap ($118,750 in 2024–25).
6. How long does my retirement income need to last?
Once you can tap into your super, you’ll need those savings to last you for life. Australians are living longer and healthier lives than ever. To get a personalised estimate on how long your retirement could be, try the lifetime estimator calculator provided to SuperGuide members by Optimum Pensions.
7. Can I get the Age Pension if I retire at 65?
Not immediately, but you may become eligible when you turn 67.
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.
8. Can I get a health card or seniors card if I retire at 65?
Retiring at 65 doesn’t prevent you from obtaining concession cards but does mean you may have some time to wait between retirement and qualifying for the card you’re looking for.
The Commonwealth Seniors Health Card (CSHC) doesn’t become available until you turn 67. However, you may qualify for a Low Income Health Care Card in the meantime.
State-based seniors concession cards are available from age 60–65 (the minimum age varies depending on your state/territory). These cards are offered to people who no longer work full time, so you should be able to apply for one immediately when you retire at 65.
9. Can I start a transition-to-retirement income stream at 65?
No, but you can start a retirement phase pension.
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 and are below age 65. In some circumstances it can be a good way to scale back your working hours and start enjoying your retirement without reducing your income. Withdrawals from TTR pensions are capped at 10% of the balance each year and tax free from age 60, but investment earnings are taxed at up to 15%.
If you’re aged 65 and over, there are no restrictions on the amount of super you can withdraw even if you’re still working, so any TTR pension you already have will be converted into a retirement phase pension. You may also open a retirement phase pension at any time. In the retirement phase, pension income and investment earnings are tax free and there is no maximum to the amount you can withdraw.
10. How much super do I need to retire at 65?
When you retire at 65, you could be spending 30 years or more in retirement, so you’ll need to create a retirement income stream that lasts at least that long.
The amount of super you will need to fund your retirement lifestyle from age 65 depends on many factors, including:
- How many years you 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.
To generate a tailored personal calculation, try TelstraSuper’s Retirement Lifestyle Planner. It allows you to estimate the income your super balance will be able to generate, as well as any Age Pension you may be eligible for.
