Worked Examples and Checklists
Preservation age 60 and conditions of release: when you can access your super
When Australians can access super in 2026–27 — preservation age 60, retirement, leaving a job after 60, turning 65, transition to retirement — with examples and fee points.
Your super is preserved until you meet a condition of release. For everyone born on or after 1 July 1964 — which in 2026–27 covers everyone who has not yet reached it — the preservation age is 60. The main conditions of release are: retiring after reaching 60; leaving an employment arrangement on or after turning 60, even if you keep working elsewhere; turning 65, whether or not you are still working; and starting a transition to retirement income stream from 60 while still working, with limits. Super can also be released in narrow cases such as terminal illness, permanent incapacity, severe financial hardship or compassionate grounds. Withdrawals from a taxed fund after 60 are generally tax-free.
This guide is part of the fund comparison checklist section. It explains general rules; your fund applies them to your situation. General information only, not financial or tax advice.
The main conditions of release
| Condition | What it means | What you can access |
|---|---|---|
| Retirement after 60 | You have ended an employment arrangement and intend never to work again for 10 or more hours a week (rules differ slightly by age) | Your whole balance, as a lump sum, a pension or both |
| Ceasing employment on or after 60 | You leave a job after turning 60, even if you have or later take another job | The balance accrued up to that point; later contributions remain preserved until another condition is met |
| Turning 65 | Age alone | Your whole balance, whether working or not |
| Transition to retirement (TTR) | From 60, still working | A non-commutable income stream, generally 4% to 10% of the account each year |
| Terminal medical condition | Two doctors, one a specialist, certify a condition likely to cause death within 24 months | Whole balance, tax-free |
| Permanent incapacity | Unlikely ever to work again in a job you are reasonably qualified for | Balance, subject to tax rules |
| Severe financial hardship / compassionate grounds | Strict eligibility | Limited amounts; see early release rules |
Other conditions exist, such as for temporary residents who leave Australia permanently and for very small balances in some situations. Ask your fund.
Worked examples
Example 1 — leaving one job at 61. Illustrative member, age 61, has two part-time jobs. They resign from one job. Because they ceased an employment arrangement after 60, they can access the super they had accrued up to that date, say $240,000. Contributions from the job they keep are preserved until they retire, leave that job or turn 65.
Example 2 — retiring at 60, then working again. Illustrative member retires at 60 intending never to work again, so their whole balance becomes accessible. A year later they take a casual role. Money already released stays unrestricted; new contributions from the casual job are preserved until another condition of release is met (such as turning 65).
Example 3 — transition to retirement at 62. Illustrative member keeps working full-time and starts a TTR income stream with $200,000. They must draw at least 4% ($8,000) a year and can draw no more than 10% ($20,000). Investment earnings inside a TTR stream are taxed at 15%, as in accumulation, until the member meets a full condition of release and tells the fund, at which point it can move into the retirement phase.
Tax on access after 60
- Lump sums and income streams paid from a taxed fund to someone 60 or over are generally tax-free and do not need to be included in your tax return.
- Untaxed schemes, mainly some public sector funds, are taxed differently.
- Retirement-phase pensions pay no tax on investment earnings, subject to the transfer balance cap. See account-based pension fees and the transfer balance cap.
Fees to check when you reach 60
Reaching preservation age is a good time to review fees, because decisions now affect decades of retirement:
- Pension fees. Account-based pensions often have different administration and investment fees from accumulation accounts in the same fund. Compare them on your balance using the annual super fee calculator.
- Insurance. Do you still need death or TPD cover? Premiums usually rise with age, and TPD cover often ends around 65.
- Investment option. Retirement can last 25 years or more; check that your option still balances growth and stability.
- Number of accounts. One account is easier to draw on and costs less.
- Withdrawal costs. Lump sums may involve a sell spread.
Before you withdraw: questions to ask
- Have I met a condition of release? Ask the fund to confirm in writing.
- Is a lump sum, a pension or a mix better for my tax, Age Pension entitlement and spending plans? The Age Pension age is 67, and Services Australia applies income and assets tests to super balances.
- Would withdrawing a large lump sum affect any government benefits?
- Am I being urged to withdraw by someone selling an investment? That is a warning sign; see super switching scams.
If you hold several accounts as you approach 60, combining them first makes drawing an income simpler; see consolidating super through myGov, and review investment option fees for the decades ahead.
Frequently asked questions
Is my preservation age 60?
If you were born on or after 1 July 1964, yes. People born earlier had lower preservation ages but have all now reached 60 or more.
Can I access super at 60 if I am still working?
Only through a transition to retirement income stream, or if you leave an employment arrangement after turning 60. Otherwise you must wait until you retire or turn 65.
Do I have to take my super out at 65?
No. You can leave it in super, keep contributing if eligible, or move it into a pension. There is no compulsory withdrawal from an accumulation account.
Does withdrawing super affect the Age Pension?
Super counts under the assets and income tests once you reach Age Pension age, whether it is in super or withdrawn. Check with Services Australia.
Official sources
- ATO — preservation age, conditions of release, tax on super withdrawals
- Moneysmart — getting your super, retirement income options
- Services Australia — Age Pension and Financial Information Service
- Federal Register of Legislation — Superannuation Industry (Supervision) Regulations 1994, Schedule 1
