For most Australians, superannuation is the largest financial asset they will ever have — yet the rules around how to use it in retirement can feel confusing and overwhelming. This guide cuts through the jargon and explains the key things you need to know in plain English.
Please note: This article is general information only and does not constitute financial advice. Everyone’s situation is different. For advice tailored to your circumstances, speak with a licensed financial adviser or contact the National Debt Helpline on 1800 007 007.
When Can You Access Your Super?
You can access your superannuation once you reach your preservation age and meet a condition of release — most commonly, retiring from the workforce. Your preservation age depends on when you were born:
| Date of Birth | Preservation Age |
| Before 1 July 1960 | 55 |
| 1 July 1960 – 30 June 1961 | 56 |
| 1 July 1961 – 30 June 1962 | 57 |
| 1 July 1962 – 30 June 1963 | 58 |
| 1 July 1963 – 30 June 1964 | 59 |
| After 30 June 1964 | 60 |
Once you turn 65, you can access your super regardless of whether you have retired.
Accumulation Phase vs. Pension Phase
While you are working and building your super, your fund is in accumulation phase. The earnings inside your fund are taxed at 15%.
When you retire and start drawing on your super, you can move it into pension phase (also called an account-based pension). In pension phase, investment earnings inside your fund are generally tax-free, which is one of the most significant tax advantages available to Australian retirees.
How Much Do You Have to Draw Down?
Once you start an account-based pension, the government requires you to withdraw a minimum amount each year. This is called the minimum drawdown rate, and it increases as you get older:
| Age | Minimum Annual Drawdown |
| Under 65 | 4% of account balance |
| 65–74 | 5% |
| 75–79 | 6% |
| 80–84 | 7% |
| 85–89 | 9% |
| 90–94 | 11% |
| 95 and over | 14% |
There is no maximum — you can withdraw as much as you like, as long as you meet the minimum. However, withdrawing too much too quickly can deplete your savings faster than expected, so it is worth thinking carefully about your spending needs.
Lump Sum or Regular Payments?
You can take your super as a lump sum, as regular income payments, or a combination of both. Most retirees choose regular income payments because it provides a predictable cash flow — similar to receiving a salary — and keeps the remainder invested and growing.
The Age Pension and Super
Having superannuation does not automatically disqualify you from receiving the Age Pension. Centrelink uses both an income test and an assets test to determine your eligibility, and many Australians receive a part pension alongside their super drawdowns.
The rules around this interaction are complex and change regularly. The best source of current information is the Services Australia website at servicesaustralia.gov.au, or you can call them on 132 300.
Where to Get Free Help
You do not need to pay a financial adviser to get basic super guidance. The following free services are available to all Australians:
•MoneySmart (moneysmart.gov.au) — run by ASIC, with super calculators and plain-English guides
•Your super fund — most large funds offer free financial guidance to members over the phone
•National Debt Helpline — 1800 007 007, free and confidential
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