There are absolutely no restrictions to accessing your Super Benefit when aged between 60 and 64 after you are retired. There are two ways you can access your Super; either as a lump-sum payment or as a pension.
You may be able to take your superannuation as a lump sum payment when you retire. This is usually tax-free from age 60.
On the other hand, if you wait until you are age 60, your withdrawal will be tax free if it is paid from a taxed fund and will attract lower tax rates if it is paid from an untaxed fund. No tax is payable on the tax-free component of your super, regardless of your age when you make a withdrawal.
You can access your super as long as you've permanently retired. If you end an employment arrangement on or after age 60, you can also access the super you've earned up until then. If you're not ready to retire, you could use some of your super while you're still working, with a Transition to Retirement Income account.
If you want a lump sum superannuation withdrawal at age 60, you will need to retire fully. You'll also need to submit a declaration to your super fund that you are retiring permanently, with no intention of returning to gainful employment - either part-time or full-time.
This obviously depends on what annual income you want to fund but if you want to be able to afford a comfortable retirement—which is an income of just over $48,000 a year for a single according to the ASFA Retirement Standard—then you need a balance of at least $500,000.
The minimum amount that can be withdrawn is $1,000 and the maximum amount is $10,000. If your super balance is less than $1,000 you can withdraw up to your remaining balance after tax.
Whether the money in your super account is tax-free or taxable when you withdraw it generally depends on the type of contributions made and whether tax was paid on it. Non-concessional (after-tax) contributions – those made from income after you paid tax on it – are tax-free when withdrawn from your super account.
If you have met the definition of retirement, there is no limit on how much super you can access. You have full, unrestricted access to your super. Furthermore, you are able to access your super as either a lump sum or as an income stream, or both.
If you are under age 60, you may be required to pay lump sum withdrawal tax, depending on the amount you withdraw and your superannuation tax components. The Low Rate Cap amount actually allows you to receive up to $230,000 of the taxable component tax-free. This is a lifetime (i.e. not annual) indexed cap.
Accessing your super
You can have your superannuation paid to you after you leave Australia if you: have departed Australia. are not an Australian or New Zealand citizen, or permanent resident of Australia. entered the country on a temporary visa (except Subclass 405 or Subclass 410)
Starting an income stream (super pension or annuity)
Investment earnings in super income streams are tax free, except in a transition-to-retirement pension where earnings are taxed at 15% until you retire or reach age 65. Read more about your super options on retirement.
In most cases, the lump-sum option is clearly the way to go. The main difference between a lump-sum and a monthly payment is that with a lump-sum option, you get to have control over how your money is invested and what happens to it once you're gone. If that's the case, then the lump-sum option is your best bet.
You can choose to access all or some of your super, subject to the rules of your fund. There are no legal restrictions on the amount you can access, but withdrawals must be taken as tax-free lump sums. Learn more about early release of super for illness or injury.
You can withdraw your super if you're. 65 years or over, whether you keep working or not. 60 or over and change employers or temporarily stop working. Under 60 and have permanently stopped working, and you've met your preservation age.
If you're 60 and over, the income will generally be tax-free. If you're between your preservation age and 59, the components of your super will dictate how it will be taxed.
Commonwealth Seniors Health Card
It includes cheaper prescription medicines under the Pharmaceutical Benefits Scheme, bulk-billed doctor visits and higher Medicare refunds on out-of-hospital costs once you reach the Medicare Safety Net. You can get the card if you: have reached age pension age.
A lump sum withdrawal is a cash payment from your super to your bank account. You can request to withdraw a lump sum if you've met certain conditions set by the Government.
Your super fund will review your application. APRA has asked super funds to make payments to members within five business days, but it may take longer, for example, if fraud is suspected or the fund needs to confirm your details.
Can I withdraw super to pay off debts? Yes, but it's important to understand that early super payments made under the severe financial hardship provision can only be used to pay your reasonable living expenses. Funds are also only available for payments that are in arrears, not for future repayments or to clear debt.
ASFA estimates people who want a comfortable retirement need $640,000 for a couple, and $545,000 for a single person when they leave work, assuming they also receive a partial age pension from the federal government. For people who are happy to have a modest lifestyle, this figure is $70,000.
So, can you retire at 60 with $1 million, and what would that look like? It's certainly possible to retire comfortably in this scenario. But it's wise to review your spending needs, taxes, health care, and other factors as you prepare for your retirement years.
The quick answer is “yes”! With some planning, you can retire at 60 with $500k. Remember, however, that your lifestyle will significantly affect how long your savings will last.