You can access your super when you retire and reach your 'preservation age' which is between 55 and 60, depending on when you were born. Or when you reach age 65 (even if you are still working).

Your preservation age depends on the year you were born, ranging from 55 to 60:

• Born before 1 July 1960: preservation age is 55
• Born 1 July 1960 - 30 June 1961: preservation age is 56
• Born 1 July 1961 - 30 June 1962: preservation age is 57
• Born 1 July 1962 - 30 June 1963: preservation age is 58
• Born 1 July 1963 - 30 June 1964: preservation age is 59
• Born after 30 June 1964: preservation age is 60
• Or when you reach age 65, even if you are still working.
  

How to access my super?

Once you’ve reached preservation age and meet other conditions (like retirement), you can start accessing your super in different ways.

Before accessing your superannuation, it is imperative that you contact your super fund, seek advice from a financial planner and consult your tax agent on the tax implications.  In every instance accessing your superannuation is a personal question that should be tailored to the individual and their circumstances.

Lump sum

One option is to withdraw your super as a lump sum, which can be a significant amount if you’ve built it up over the years. This choice can feel empowering, especially if you have big goals—like paying off your mortgage, renovating your home, or buying a caravan for travels around Australia.

• Pros and cons: Taking a lump sum can give you financial freedom and let you clear debts or make large purchases. However, there are risks. Withdrawing a large amount at once can impact how much you’ll have left for your later years, especially if the money isn’t managed carefully. There are also tax considerations depending on whether you’ve reached your preservation age or are eligible to access your super early.
  

Regular income stream (pension)

Another popular option is to set up a regular income stream, which provides you with a steady income in retirement.

• Types of income streams: There are different income stream options, including account-based pensions and annuities. Each has unique features and benefits, so it’s worth exploring them to find one that best suits your needs.
  

• Benefits of regular income: Having a steady income can make budgeting easier and give you peace of mind, knowing you won’t run out of money quickly. Unlike a lump sum, a regular income stream provides stability, letting you enjoy retirement without stressing about cash flow.
  

Combination strategy

Many people find a combination of a lump sum and an income stream to be the most balanced approach. For example, you could use a portion of your super for a lump-sum payment to cover immediate

Conditions for accessing super early (before age 65)

In some cases, you may be able to access your super before age 65, provided you meet specific conditions.

Retirement

If you’ve reached preservation age and are fully retiring, you’re eligible to access your super. Fully retiring generally means that you’ve stopped working and don’t intend to go back to full-time work.

Transition-to-retirement (TTR) strategy

If you’re not ready to fully retire, you might consider a Transition-to-Retirement (TTR) strategy, which allows you to access a portion of your super while still working part-time.

A TTR arrangement enables you to ease into retirement by supplementing your part-time income with super withdrawals. This way, you can reduce your working hours without sacrificing your overall income. TTR is ideal for those who want a gradual retirement or prefer a less abrupt shift from full-time work to retirement. It can also help if you’re looking to boost your super balance via salary sacrifice, as you can use TTR to cover any income shortfall.

Other early access situations

There are a few other scenarios where you might be able to access super early:

• Severe financial hardship: If you’re experiencing financial hardship, you may qualify for early access to your super to help with living expenses. However, this option requires proof of your situation and may have withdrawal limits.
  

• Compassionate grounds: Under compassionate grounds, you can access super for specific reasons, like covering medical treatment costs, preventing mortgage foreclosure, or modifying your home due to disability.
  

Is my super taxed?

Age-based tax implications

How your super is taxed depends on your age. Generally, super withdrawals are tax-free once you’re 60 or older. However, if you’re under 60, tax may apply to some of the withdrawal amount. For example, if you retire at preservation age but are below 60, you may need to pay tax on the withdrawal.‍

Importance of strategic withdrawals

To minimise tax and maximise your super, it’s a good idea to plan withdrawals strategically. Waiting until you turn 60 could allow you to take withdrawals tax-free, boosting the value of your super.

Where to from here?

Super is only one piece of the retirement puzzle. A successful retirement plan considers other assets, income sources, and lifestyle needs, ensuring that your savings support you through every stage. Combining your super with other assets, like savings, property, and investments, can provide a well-rounded financial base for your golden years.

Understanding when and how to access your super is key to a secure retirement. By planning early and considering your options, you’ll be better equipped to achieve the lifestyle you envision in retirement. So, whether you’re ready to retire at preservation age, considering a TTR strategy, or exploring early access options, knowing your super choices now can help you enjoy peace of mind and financial freedom when it matters most.