Super is a compulsory, long-term investment designed to help you save for your retirement. When you can access your super is different to when you can access the government’s Age Pension.
1. When you can access your super
You can generally access your super when you reach age 60 and have stopped working. You can also access your super if you are 65 or older even if you haven't stopped working.
If you are currently under age 60, you need to meet one of the conditions for early access, such as severe financial hardship or a terminal medical condition to be able to access your super.
Are you a defined benefit member?
If so, additional rules, restrictions and opportunities may apply to the way that you can access your super. Please refer to your employer’s microsite for details about your plan's arrangements or call us with any questions.
2. How you can access your super
Once you’re eligible to access your super, you may be able to:
- get regular payments from your super using a retirement income product
- withdraw it (or part of it) as a lump sum
- access your money using a combination of both an income stream and lump sum.
Even when you’re eligible, receiving money from your super doesn’t happen automatically. If you want to receive regular payments from your super, you'll need to open and transfer your super into a retirement income account.
Pros of retirement income accounts
- Tax: Your investment earnings are tax-free, and income payments are also tax-free over age 60.
- Income: Depending on your age and if you're still working, it could be a good option to replace or boost your income.
- Investing: Money in your income account stays invested in your chosen investment options while you get payments.
Cons of income payments
- Min/max limits: The government sets a minimum amount for your income stream. That means you have to take a certain percentage of your balance in payments each year, based on your age. For Transition to Retirement income accounts, there's also a limit to how much you can take out each year.
- Transfer limit: There's a limit on how much super you can transfer tax-free into a retirement income stream.
Call ART on 13 11 84 with any questions or for help.
Learn more about retirement income options
3. Will your payment be taxed?
Once you're 60 or over, there’s no tax payable on lump sums or income stream payments paid from your super.
4. Will you be eligible for government benefits?
As well as your super, you might qualify for the Age Pension or other government benefits. To be eligible for the Age Pension you must meet the age and residency requirements and pass the income and asset test.
You may be also able to combine the Age Pension with their superannuation savings in retirement.
Age Pension Concierge Service
Generally, to be eligible for the Age Pension, Australians need to be at least 67 years of age. As Australians can have unrestricted access to super from age 65, it’s likely that many people will have drawn down some of their super before they’re eligible for the Age Pension.
If you're eligible for some or all of the Age Pension, you may consider accessing this important retirement income stream as soon as possible, so your super will last longer in retirement.
It may not be as easy as it sounds, however. According to a survey conducted by financial advice firm, Retirement Essentials:
- 79% of prospective Age Pensioners surveyed say they want help with the Age Pension as obtaining the Age Pension is a source of stress and misunderstanding.*
- Only 44% of Australians reported applying for the Age Pension on time. The remaining 56% apply late and miss out on income they are entitled to. Nearly one third of which apply at least one year late, costing tens of thousands of dollars in severe cases. Missed payments are most often funded by withdrawals from super.*
At ART, we have a retirement income vision to be the leader in delivering better retirement outcomes for members through a lifetime of education, guidance and advice. Providing help with the Age Pension for income support fits right in with this vision.
ART has partnered with SuperEd to provide a service known as ‘Retirement Essentials’. This Age Pension concierge service will guide, assist and support ART members to apply for the Age Pension or Commonwealth Seniors Health Care Card to ensure they get all their Age Pension entitlements.
To find out more about Retirement Essentials, including the cost of the Age Pension concierge service, visit retirementessentials.com.au/art
For more information on the Age Pension visit the ART website
*Retirement Reality, Link Advice August 2022
5. Accessing super while still at work
If you have reached age 60, but not yet permanently retired, you may be able to access your super through a Transition to Retirement (TTR) strategy. To find out more about a TTR strategy, visit the ART website or watch our Super Insider episode ‘How to transition from work to retirement’.
Before you withdraw super
Have you spoken to a financial adviser? What you do with your super can have a big impact on your future lifestyle. It may also affect any insurance you have in super.
Your membership includes financial advice to help you make decisions about:
- Different ways to withdraw/access your super
- How each option is taxed
- Your account and the Age Pension
- The best time and how much they may need to retire
ART members can get information on advice here.