Accessing your retirement savings
You can start accessing some of your super in the form of an income stream while you’re still working and have reached age 60. If, however, you want to withdraw your super as a cash lump sum, you need to meet a condition of release. Conditions of release, which allow you to receive lump sums from your super, include:
- Turning 65 (even if you haven’t retired)
- Reach age 60 or terminate employment/self-employment or retire
- Satisfy an early access condition of release, such as permanent incapacity, compassionate grounds or financial hardship.
Retirement means you have ceased employment, including self-employment, either:
- When you were 60 years old or over or
- At any time and have no intention of returning to work for 10 hours or more each week. See our article on the various ways you can access your retirement savings.
Accessing your retirement savings via transition to retirement
A transition to retirement pension enables you to access your super as an income stream before you retire but after you have reached age 60.
Through a transition to retirement pension you can choose to work less, or continue working the same hours while making your own contributions into super. In both cases, you can use the income from your transition to retirement pension to supplement any reduction in your take-home pay.
For example, you can gently transition into retirement by remaining in the workforce on a part-time basis. To maintain the same level of income, a transition to retirement pension allows you to make up the difference in lost income from your super. As you’re still employed, your super will continue to be topped up too.
While this can be a useful way to supplement your income, accessing your super may reduce the amount of retirement savings you have left to fund your eventual retirement.
Another drawback is you are required to receive a minimum pension payment of 4% of your transition to retirement pension account balance each financial year, with a maximum pension payment of 10%.
When are you eligible for the Age Pension?
To be eligible for a full or part Age Pension from the government, you must have reached Age Pension age and satisfied an income / assets test, as well as other requirements.
The current qualifying age for the Age Pension is 67.
If you're eligible for the Age Pension, the amount you'll receive will depend on whether you're single, a couple or illness separated couple, along with the amount of income you earn and the total value of your assets (such as property, investments and cars, but excluding the home you live in). Super is assessed under both the income and assets test.
The Age Pension is made up of a basic rate, as well as a pension supplement and energy supplement.
There are different rates of Age Pension payments for single and partnered people. The current maximum fortnightly payments are:
Per fortnight
|
Single
|
Couple (combined)
|
Partnered (apart due to ill health)
|
Maximum basic rate
|
$1,047.10
|
$1,578.60
|
$1,047.10
|
Maximum Pension Supplement
|
$83.20
|
$125.40
|
$83.20
|
Energy Supplement
|
$14.10
|
$21.20
|
$14.10
|
Total
|
$1,144.40
|
$1,725.20
|
$1,144.40
|
Source: Services Australia.
Working out your entitlements isn’t always straightforward. You can find out more regarding your eligibility and entitlement to the Age Pension payment through Services Australia or figure out if you're eligible for the Age Pension.
How much do you need to retire?
The amount needed each year in retirement may affect your retirement age. It will be different for everyone, but the Association of Superannuation Funds of Australia (ASFA) estimates that Australians aged 65-84 who own their own home and are in relatively good health, will need the following amount of money each year (June quarter 2024):1
| Total per year |
Comfortable lifestyle p.a. |
Modest lifestyle p.a. |
Couple
|
Single
|
Couple
|
Single
|
$73,337
|
$52,085
|
$47,731
|
$33,134
|
The figures in each case assume that the retiree(s) own their own home and relate to expenditure by the household. This can be greater than household income after income tax where there is a drawdown on capital over the period of retirement.
A modest retirement lifestyle is considered better than the Age Pension, but one where you’re only able to afford basic activities.
A comfortable retirement lifestyle allows retirees to maintain a good standard of living, including being able to afford things such as better quality consumer goods, private health insurance, and recreational activities.
Factors involved in retiring
Working out how much is enough for your retirement depends on many factors, such as your plans, lifestyle, and the number of years you expect to spend retired. Additionally, estimating how much you’ll have when you plan to retire depends on factors such as your current salary, super balance and assets.
By using our personal super calculator and tools, you can get an indication of how much super you may have in retirement and how long your super may last. You can also see the impact that changing items like your income goal, retirement age, contribution amounts or investment mix may have on your results.
When can you retire?
There’s no magic retirement age, and it’s a very personal decision. Deciding when to retire will depend on a range of factors, and you’ll need to consider what kind of lifestyle you want to have in retirement. You’ll also need to understand whether you’ll have enough money to support this.
To ensure you have sufficient funds to enjoy your retirement, use our range of tools and resources to help kick-start your retirement planning. Also, refer to our retirement planning guide to help you prepare well for retirement and get a handle on what to expect when that momentous day arrives.
You may also want to consider speaking to a financial adviser. They can help you determine how much you should save and invest each month to reach your retirement goals, and whether your investment strategy is right for you. They can also identify any tax savings or government benefits that may be available to you.
Frequently Asked Questions
What age can women retire in Australia?
As there's no official retirement age in Australia, women can choose when they want to retire, if they have sufficient super savings or other financial means to support themselves.
To access the age pension however, men and women need to be aged 67.
What age can I access my retirement savings in Australia?
You can access your retirement savings when you reach age 60 and are retired or stop working for an employer.
There are some circumstances where you may be able to access your super earlier.
When can I access my super tax free?
Generally, once you reach age 60, your super payments are tax free.
