Updated on 4 April 2025
4 minute read
Thinking about life after work? You're probably weighing up pension vs super options for funding your retirement. Let’s break it down.
People are living longer than ever, which means their savings for retirement need to last longer, too. That's why it's crucial to make your super work harder for you.
By carefully managing your super, you might be able to stretch your retirement income further – and enjoy a higher standard of living for longer.
But before getting into that, let's start with understanding the differences in your super phases.
There are two phases in your super journey. They both have different goals depending on where you're at in your working life.
While you're working, your super is in the accumulation phase. This means it's trying to grow as much as possible over a longer period. While your super is in this phase, it's not assessed as part of the income and assets test until you and your partner reach your Age Pension qualifying age.
Once you retire, you generally move into a retirement (or pension) phase. The aim is to give you a steady income to spend in retirement.
With our 3 pension options, you can get regular tax-free payments into your bank account from age 60.
For when you're nearing retirement. Get payments from your super while you're still working up to age 64.
Eligible for your super? Get a regular income with flexible payment options. You can also choose your investment options.
Once you're eligible to access your super, this pension gives you income for life, which never runs out. There are also possible Age Pension benefits.
Your super fund invests your contributions to help grow your money over time. If the market's doing well, it means your money could increase by the time you retire. When the market's down, your balance may decrease.
The Age Pension is income support from the government. It's meant to be a safety net to help older Australians who need it most. You need to meet age and eligibility requirements to get it.
| Super | Age Pension | |
|---|---|---|
| Access age | Access age is generally 60 (unless you're eligible for early access) | Eligibility age currently 67 |
| What is it? | Your money that's invested to grow over time | Government-funded payment |
| How you get it | Different types of access (e.g. account-based pension, lump sum payment) | Regular fortnightly payments |
| Amount | The amount you have in super depends on any contributions to your account, as well as investment returns | The amount you get depends on income and assets test (super is counted as part of this once you turn 67) |
| Tax | Any withdrawals after age 60 are tax-free | Taxed as income |
| After you die | Could be passed on to beneficiaries when you die | Stops when you die |
There are plenty of ways to combine retirement products with the Age Pension. Check how your super balance is counted when you apply for the Age Pension.
Age Pension eligibilityNow you have an idea of the differences between super vs pension, and Age Pension vs super, the key is staying engaged. Consider:
Log in to Member Online to track your super and manage your investment options.
You can get advice about your ART account – including Retirement Income accounts – over the phone. It's included as part of your membership.1
Planning for retirement should be exciting. We've got everything you need to make it stress-free.
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1. Any advice given is by representatives of Sunsuper Financial Services Pty Ltd (ABN 50 087 154 818, AFSL 227867), wholly owned by the Trustee of ART. As representatives, they may recommend ART products from time to time. Please read the Sunsuper Financial Services FSG - individual for more info about that advice and how they’re paid.
