When you retire is your decision
You can retire from work at any time, but you might want to consider two important milestones. The first is age 67, which is when you may be eligible to receive the government Age Pension. The second is when you can access your super.
When can I access my super?
For many Australians, super will be a significant source of income in retirement, and while your super is your money, there are rules around when you can get your hands on it.
If you're over 65
You can access your super with no restrictions, whether you’re still working or fully retired. If you start an allocated pension your withdrawals, pension payments, and investment returns are all tax free.
If you're over 60 but under 65
You can get unrestricted access to your super if you’ve turned 60 and stopped working. You may need to make a statutory declaration that you intend to never again become gainfully employed for 10 hours or more each week. Alternatively, if you’re still working, you can start a Transition to Retirement (TTR) pension account and access up to 10% of your account balance every financial year.
If you're younger than 60
Super is designed to help you save for your retirement, but under some circumstances – known as ‘conditions of release’ – you may be able to withdraw some of your super early. These include:
- severe financial hardship
- compassionate grounds
- terminal illness
- permanent incapacity
- first home super savers scheme
When can I get the government Age Pension?
The Age Pension is income support paid by the government to eligible Australian retirees. To receive the Age Pension, you need to be 67 years or older. You’ll also need to meet other criteria such as residency requirements, the income test and an assets test.
Learn more about the government Age Pension and who can get it.
Additional resources
Download our Age Pension fact sheets to decide if you’re eligible and learn how to apply.
What if the timing is out of my control?
While planning for retirement is always a good idea, things don’t always happen the way we expect. The most common reason Australians retire is because they can access their super and/or the government Age Pension. But many are forced to quit the workforce earlier than expected.
The most recent data from the Australian Bureau of Statistics1 show the most common reasons Australians begin retirement are:
- access to finances (31%)
- sickness, injury or disability (13%)
- retrenchment or dismissal (5%)
- caring for an ill or elderly person (3%)
Redundancy
If you’re made redundant unexpectedly, you’ll need to consider whether you can access your super early or tap into other sources of capital. Depending on your circumstances, you may also be eligible for Centrelink benefits.
Health issues or illness
Having to stop or decrease working due to health issues or an illness means you may have less income, as well as increased medical expenses. You may be able to access support through your insurance or get early access to your super in some cases.
Caring for a family member
If you have ageing parents, you may decide to stop or cut back on work to take care of them. As a Mercer Super member, you have access to support and guidance to help navigate aged care options through Care & Living with Mercer.
Don't hope for the best, plan for it with financial advice
As a Mercer Super member you can have access to financial advice about your super at no additional cost.
Explore more: it’s your time to plan
Disclaimer: This content has been prepared on behalf of Mercer Superannuation (Australia) Limited ABN 79 004 717 533, Australian Financial Services Licence #235906, the trustee of the Mercer Super Trust (‘Mercer Super’) ABN 19 905 422 981. Any advice is of a general nature and does not take into account your objectives, financial situation or needs. Before acting on any advice, please consider the Product Disclosure Statement (including incorporated documents) and Financial Services Guide available at mercersuper.com.au. The product Target Market Determination can be found at mercersuper.com.au/tmd. The material contained in this document is based on information received in good faith from sources within the market and on our understanding of legislation which we believe to be accurate.
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* Any information in this material regarding legal, accounting or tax outcomes does not constitute legal advice or an accounting or tax opinion and prior to relying and acting on this information it is important that you seek independent advice from a qualified lawyer or accountant regarding this information. Past performance is not a reliable indicator of future performance. 'MERCER' is a registered trademark of Mercer (Australia) Pty Ltd ABN 32 005 315 917.
Past performance is not a reliable indicator of future performance. 'MERCER' is a registered trademark of Mercer (Australia) Pty Ltd ABN 32 005 315 917.