When can I access my super?

Over your working life you have been growing your retirement nest egg. Your superannuation is there to help support you in retirement and, ideally, provide you with the funds to enjoy a comfortable lifestyle during your golden years.

Your ability to access your super is generally based on your age, but there are certain conditions that need to be met to make sure you don’t end up on the wrong side of the ATO.

There are definitely tax benefits when your super moves into retirement phase – no tax on your income payments and no tax on your earnings; however, there are still regulations around how you access it.

“Accessing your super is governed by strict rules — understanding them helps you plan with confidence.”

Superannuation conditions of release

The ATO outlines Australian super laws that have very specific conditions of release for superannuation. These are…

“You can access your super when you:

reach your preservation age and retire
reach your preservation age and choose to begin a transition to retirement income stream
while you are still working
are 65 years old (even if you have not retired).

You can also access super in some special circumstances, including:

compassionate grounds
severe financial hardships
terminal medical condition
temporary incapacity
permanent incapacity
super less than $200
temporary resident departing Australia.”

Separate to these conditions, there may be governing rules relevant to your super provider that could have additional restrictions that impact the payment of your super benefits. If you are unsure, we recommend speaking with your provider to confirm this information.

Preservation age

As noted above, meeting your preservation age is the most common first step to accessing your superannuation. And your preservation age is determined by when you were born.

Date of birth	Preservation age
Before 1 July 1960	55
1 July 1960 – 30 June 1961	56
1 July 1961 – 30 June 1962	57
1 July 1962 – 30 June 1963	58
1 July 1963 – 30 June 1964	59
From 1 July 1964	60

Transition to retirement

The transition to retirement income stream (TRIS) enables you to receive regular payments from your super while you continue working. Ideally, you would not start this income until you have turned 60, because if you are below that age, tax is payable on investment earnings.

The ATO has guidelines on how much can be accessed via this pension:

“There are restrictions on the amount you can withdraw each financial year. For example, if you are under 65 years old, you can access between 4–10% of the balance of money in your super account each financial year.

Once you have met a condition of release with a nil cashing restriction, you can access your super benefits in other ways and don’t need a TRIS. In these cases, your provider will start paying you a normal account-based pension or you can take your benefit as a lump sum.”

It can be difficult to determine whether a TRIS would suit your personal circumstances. If you are unsure, it can be useful to seek professional financial advice.

“Knowing when and how you can access your super is just as important as knowing how to grow it.”

Do I have to access my super?

There is no strict law that says that have to access your super once you meet the conditions of release. Depending on your personal financial situation, you may decide that you want to keep working, or that you simply do not need to access your super just yet.

There are always options available to you. Instead of starting an income stream, you could decide to withdraw some of it as a lump sum.

This way, a significant amount of your super could be left untouched and continue to earn interest and investment returns.

Speak to your advisor

We understand that superannuation can be complex… that’s where we can help. We can assess your circumstances and determine how to make the most out of your super. Plus, we can make sure you meet all the necessary conditions of release. To find out more, contact our team today. Read more Superannuation articles.

Cayle Petritsch - Director & Wealth Advisor

Cayle Petritsch, Director and Wealth Advisor, works with our existing clients who have recognised the importance of business owners making strategic financial choices not only for their company, but for their personal finances too.

Cayle saw a great opportunity to expand North Advisory’s services into SMSF/superannuation, personal wealth management, asset protection services and other crucial personal finance facets that business owners need to consider.

His approach to wealth management allows you to receive highly personalised wealth advice. Working closely with Marius, Cayle understands the unique needs of every client, from their lifestyle and business goals to their retirement plans.

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Don’t hesitate to contact us if you’re ready to streamline your financial management with tailored solutions. Your business’s success is our primary focus. Fill in the contact form or call us to book an initial 30-minute chat.

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