Superannuation is one of the most powerful wealth-building tools available to Australians — but it’s also heavily regulated. You can’t just dip into your super whenever you feel like it (as tempting as that might be). There are conditions of release you need to meet before accessing superannuation.
So, when can you legally and safely access your super? Let’s break it down.
The Standard Rules: Preservation Age and Retirement
For most people, the magic word is retirement.
But it’s not as simple as just quitting your job. There are two key concepts you need to understand:
- Preservation Age
- Condition of Release
Your preservation age is the age at which you can start to access your super — but only if you meet a valid condition of release.
If you were born before 1 July 1964, you’ve already reached your preservation age. If you were born after 30 June 1964, your preservation age is 60.
Between the ages of 60 and 65, you need to satisfy a condition of release to get your hands on the money. That is, you need to cease an existing employment arrangement. Once you cease an employment arrangement, you have full access to your super — regardless of whether you intend to return to work later.
If you do return to work, you won’t be able to make further lump sum withdrawals from your accumulation account unless you again meet another condition of release. However, if you have commenced an account-based pension, your pension payments can continue as normal.
If you are between ages 60 and 65 but don’t cease an employment arrangement, you can still access part of your super through a Transition to Retirement (TTR) pension — but it’s restricted. More on that later.
From age 65, you have full access regardless of your working status. Again, more on this soon.
Special Circumstances for Early Access
There are some limited situations where you can access super early.
But — and it’s a big but — they come with strict rules and requirements.
Here are the main ones:
- Severe Financial Hardship
If you’ve been on government income support for at least 26 weeks and can’t meet reasonable and immediate family living expenses, you may apply for a limited release (usually capped at $10,000). - Compassionate Grounds
For things like medical treatment for serious illness, making a mortgage repayment to prevent foreclosure, or funeral costs. You need approval from the ATO before your fund can release the money. - Terminal Medical Condition
If two registered medical practitioners certify that you have less than 24 months to live, you can access your super tax-free. - Permanent Incapacity
If you’re permanently unable to work in a job you were qualified to do by education, training or experience due to physical or mental ill health, you may be able to access your super early (often with tax concessions). - Temporary Residents Leaving Australia
If you were a temporary visa holder who worked in Australia and have left permanently, you can apply for a Departing Australia Superannuation Payment (DASP).
Early release options should always be a last resort. There can be tax implications, and you’re eroding your retirement savings.
First Home Super Saver Scheme (FHSSS)
If you’re a first home buyer, there’s a special pathway to tap into your super early — and it’s not just allowed, it’s encouraged.
The First Home Super Saver Scheme (FHSSS) lets you withdraw voluntary contributions (plus associated earnings) to help fund your first home deposit.
Key points to know:
- You can contribute up to $15,000 per financial year ($50,000 maximum across all years combined) as a member voluntary contribution under the scheme.
- You must apply to the ATO for a release before signing a contract to buy or build.
- You must intend to live in the property for at least six months within the first 12 months of ownership.
The FHSSS is a great strategy to boost your savings by using the concessional tax treatment of super. But like most good things, it’s packed with fine print — so it’s worth getting advice to make sure you structure your contributions properly.
Transition to Retirement (TTR) Pension
If you’ve reached preservation age but aren’t ready to fully retire, you can access a Transition to Retirement (TTR) income stream.
A TTR allows you to withdraw a limited income (between 4% and 10% of your TTR balance per year) while still working.
This can be a smart strategy if used correctly — for example, to:
- Boost your take-home pay while cutting back work hours, or
- Maximise concessional contributions and lower your tax bill.
However, a TTR pension can be complex (since investment earnings on TTR pensions are still taxed at 15%, unlike account-based pensions after full retirement), so it’s worth getting advice to ensure it actually suits your situation.
What Happens After Age 65?
Once you hit age 65, it’s a free-for-all (kind of).
You can access your super without any conditions — whether you’re still working, semi-retired, or fully retired.
At that point, most people roll their super into an account-based pension to start drawing a regular income.
The best part? Account-based pensions are a tax-free entity meaning there is no tax on earnings, withdrawals and franking credits are fully refunded into your account.
The Guided Investor approach
Superannuation is designed to fund your retirement, not your next holiday or renovation project.
Accessing it should be a carefully considered move — and ideally, part of a bigger plan for your future.
We typically look at accessing superannuation as part of Phase 4 of Wealth Creation, where you have done the hard work to accrue the assets you need for financial independence and it’s now time to enjoy the fruits of your labour.
