Accessing your super when you're retired

Find out whether you’re eligible to withdraw your super, how much you can take out, and what it might mean for your tax and the Age Pension. 

Make a retirement plan

Before we jump into withdrawing your super, it’s a good idea to have a clear picture of what your ideal retirement looks like and how much money you’ll need to make that lifestyle a reality.

To do that, you need to consider how much super to keep in your account. Think about what you need to cover the rest of your retirement years, while having enough in your pocket to meet your everyday living expenses.

Knowing this can help you make smart decisions on how much to take out and when.

Here are some tips for figuring out how much you’ll need for retirement. 

Who can withdraw money from super

First things first, are you eligible to withdraw money from your super?

You can only take money out of your super once you meet one or more conditions of release. These conditions are set by the Australian Government. They include things like:

• turning 60 and either retiring, stopping an employment arrangement, or starting a Transition to Retirement (TTR) strategy
• turning 65.

While super is generally money for retirement, in special circumstances it’s possible to withdraw money before you retire. For example, if you’re experiencing severe financial hardship, have a disability, or require funds for compassionate reasons. Find out more about getting early access to your super. 

Options for accessing your super regularly

Lump sum withdrawal

This is a one-off withdrawal that comes out of your super and is paid to your bank account. If you’re eligible to withdraw money from your super, you can make a lump sum withdrawal whenever you want from a Rest Super, Rest Corporate or Rest Pension account.

Read more about how to make a lump sum withdrawal.

Regular withdrawals

You can use a Rest Pension account to make regular withdrawals from your super to your bank account (this is often referred to as a ‘retirement income stream’). These payments are generally tax-free if you’re 60 or over. You can choose to receive the payments fortnightly, monthly, quarterly, half-yearly or yearly. It’s just like receiving a salary, except the money is coming out of your super rather than from an employer.

Read more about receiving an income during retirement.

How your withdrawal is taxed

If you’re 60 or older, any money you withdraw from your super will generally be tax-free.

If you’re under 60 and eligible to access your super early, you may have to pay tax on some or all of the money you take out.

Read more about how super withdrawals are taxed

How withdrawing money impacts your Age Pension

When you take money out of your super, how it’s treated by Centrelink or the Department of Veteran’s Affairs (DVA) depends on how you take it out and spend it.

Regular withdrawals

Receiving regular withdrawals from your Rest Pension account will reduce your super balance over time. These payments won’t directly change any Age Pension payments you’re currently receiving, but your Rest Pension account balance and deemed income will be assessed by Centrelink and/or the DVA as part of your Age Pension eligibility.

Lump sum withdrawals

Centrelink and the DVA treat this differently to regular withdrawals. How they assess the lump sum withdrawal depends on what you do with the money. For example, if you gift it, invest it or spend it.

Rollover

If you move some of your money into another super account, it usually won’t impact your Age Pension payments. This is because the money still counts in the assets and income tests that determine your eligibility for the Age Pension.

Still a little unclear? Learn more about how Super and the Age Pension work together. 

How much you can withdraw

Regular withdrawals

If you make regular withdrawals from your Rest Pension account, you must withdraw a minimum percentage of your account balance each year. This is based on your age at 1 July each year (or when you open your account).

Take a look at the minimum pension payment rates for your age and an example.

If you have a Rest Pension – Retirement account (e.g. you’re at least 65 or fully retired) there’s no maximum to how much you can withdraw. But if you have a Rest Pension – Transition to Retirement account (e.g. you’re under 65 and still working) the maximum amount you can withdraw each financial year is 10% of your account balance at 1 July (or within the first year of opening your account).

Lump sum withdrawal

If you make a lump sum withdrawal from a Rest Super, Rest Corporate or Rest Penson – Retirement account, you can withdraw as much as you like. The minimum pension payment rates don’t apply to lump sum payments. However, you can’t make lump sum withdrawals if you have a Rest Pension – Transition to Retirement account.

Read more about making a lump sum withdrawal from your Rest Pension account.