When can you access your super
By law, your super balance must remain in a super fund until you satisfy a ‘condition of release’. Generally, you can access your super when you reach:
age 65, whether you’re working or not.
age 60 and stop working. If you have another job or go back to work, you won’t be able to access any future super contributions until you stop working again.
age 60 and start a pre-retirement pension, whether you’re working or not.
In some circumstances, such as if you’re totally and permanently disabled, have a life-threatening illness or going through financial hardship, you can access your super earlier.
Super tip
The preservation age for all people is now age 60. Find out more in the When can I access my super? factsheet. The preservation age should not be confused with the Age Pension age, which is the age at which people become eligible to receive the Age Pension, subject to meeting other eligibility criteria set by the Government. From 1 July 2023, the Age Pension age is 67 for everyone. Find out more on the Department of Social Services website.
Are you making the most of your super?
For most Australians, super is one of their largest assets so it’s important to look after it. Find out about these five things you should be across when it comes to managing your super.
The role of the Age Pension
Despite an increased reliance on super to fund people’s retirement, many Australian retirees continue to supplement their retirement income with at least a part government Age Pension. Even if you only qualify for a part pension, this can make a difference to your retirement lifestyle, as you’ll automatically qualify for a pension concession card and associated discounts.
Not ready to retire yet? Consider a pre-retirement pension
The pre-retirement pension (PRP) strategy may be for you if you’re under age 65, have reached preservation age and would like to:
reduce your working hours and use the pre-retirement pension to supplement your income; or
continue working full-time and salary sacrifice (within government-set limits) to boost your super while using your PRP to supplement your income. By changing how you receive your income, you can generally reduce the amount of tax you pay. Typically, this option is of greatest benefit to those aged 60 years or over or those on a high marginal tax rate.
You can find more about how a PRP works in the Pre-retirement pension strategy factsheet.
Ready to retire?
A pension or income stream from a super fund is a popular way for Australians to manage their retirement savings. Investing your super in a pension rather than taking it as a lump sum can make your retirement savings go further, due to lower tax rates and the ongoing benefit of investment returns.
Each year you can choose the amount you want to receive from your pension as an income, subject to a minimum age-based amount, which is set by the government. Your payments will be paid into your bank account.
You can also opt to keep your money in the super phase, but remember, investment earnings are taxed at up to 15%, while investment earnings on account-based pensions are tax free.
Did you know? With a Mine Super account-based pension you can access your money at any time (min. $2,000).
Mine Super members can opt to:
1. Open an account-based pension.
You can invest in the same assets, such as cash, shares or property, inside or outside a pension. The difference is that the government provides tax savings on investments inside a pension as an incentive to convert your super into a regular income stream to support you in retirement, rather than taking it as a lump sum. The lower tax rates mean the same investment in a pension will go further than if invested outside a pension through tax savings (unless it’s a negative return).
2. Cash out their super as a lump sum.
You can opt to withdraw your super and get it paid into your bank account. But remember, by spending your super savings now, you reduce your future retirement income.
3. A mix of 1 and 2.
Opening a pension account
To open a pre-retirement pension or account-based pension, you need to have at least $15,000 to invest and meet certain criteria. Find out more on our Retirement join web page.
Turn to Mine
If you want more information about preparing for retirement, call us on 13 64 63 and we’ll be happy to help. We can provide general information over the phone or put you in touch with Mine Super Financial Advice for additional support to help you decide what’s right for you.