Once you stop working, one of your main (possibly only) source of income also ceases. Your superannuation benefits which have been accumulating during your working life, via contributions made by your employer (and possibly additional contributions made by you, your spouse or the government), are now potentially accessible to you, subject to meeting certain conditions1. Your super fund will need to be notified, and they will have a range of forms that can facilitate the next steps.
You may want to consider seeking advice from a qualified professional when thinking about accessing super, as they will be able to assess your personal situation and provide appropriate financial advice to you.
When a person retires after reaching age 602, they can request their superannuation monies to be moved to an account-based pension structure. In other words, they can request their superannuation to be moved from accumulation phase, to drawdown (or pension) phase.
Transferring superannuation from accumulation phase to pension phase is not compulsory. However, there may be some tax advantages to transferring your super from an accumulation account to an account-based pension.
Investment earnings on your super in accumulation phase is generally 15%. If and when your super monies are converted to an account-based pension account, the tax rate on investment earnings reduces to zero. Note that depending on your age when you are drawing down a pension, you may still incur tax on the actual pension payments (if under age 60). Once you turn 60, most drawdowns are tax free in your hands.
Once you have reached age 60 and have ceased all gainful employment, there are no restrictions on the maximum amount that can be withdrawn from a super or pension account.
The rules do however specify:
As you get older, the minimum percentage increases gradually. Investment earnings generated by a pension are tax free, but you are required to withdraw a proportion of your accumulated savings, to be able to continue to enjoy the concessional tax treatment it receives.
If your pension income exceeds your living expenses, it’s worth considering where you place this excess. Depending on this, any income generated from the excess funds may result in a personal tax liability.
This should be part of the broader discussion with your advice professional, but generally speaking, when people move from ‘accumulating’ capital for their retirement to ‘drawing’ on their capital, this usually coincides with a “re-setting” of a person’s asset allocation, as part of their overall investment strategy.
Whilst a declaration of genuine intent to cease all gainful employment after reaching age 60 will potentially make accumulated super monies available, this does not mean you are ever prevented from returning to work. Changing one’s mind (for whatever reason) and returning to work will not reverse the above process, although it does potentially mean that new contributions to super may be preserved until you satisfy (or re-satisfy) a new ‘condition of release’.
In summary, it is recommended that professional advice is sought from a suitably qualified adviser, as this will mean your superannuation savings are within the appropriate structure and have the right investment mix to help you through your retirement years.
1 The ATO has a useful summary on the circumstances in which you can access your super.
2 Your preservation age is based on your date of birth.
Thinking about retirement, but not sure where to start? Get tips and information in our Planning for Retirement guide, to help you get started today.
Things you should know
Information current as at 1 July 2025. The article was prepared by BT, a part of Westpac Banking Corporation ABN 33 007 457 141 AFSL and Australian Credit Licence 233714 (Westpac). This information does not take into account your personal objectives, financial situation or needs and so you should consider its appropriateness, having regard to these factors before acting on it. This information provides an overview or summary only and it should not be considered a comprehensive statement on any matter or relied upon as such.
This information may contain material provided by third parties derived from sources believed to be accurate at its issue date. While such material is published with necessary permission, the Westpac Group accepts no responsibility for the accuracy or completeness of, nor does it endorse any such third party material. To the maximum extent permitted by law, we intend by this notice to exclude liability for this third party material.
BT cannot give tax advice. Any tax considerations outlined in this document are general statements, based on an interpretation of current tax laws, and do not constitute tax advice. As such, you should not place reliance on any such taxation considerations as a basis for making your decision with respect to the product. As the tax implications of investing in this product can impact individual situations differently, you should seek specific tax advice from a registered tax agent or registered tax (financial) adviser about any liabilities, obligations or claim entitlements that arise, or could arise, under a taxation law. If you need more information to complete your tax return, please consult your accountant or tax adviser to obtain professional tax advice.
Superannuation is a means of saving for retirement, which is, in part, compulsory. The government has placed restrictions on when you can access your investments held in superannuation. The Government has set caps on the amount of money that you can add to your superannuation each year and over your lifetime on both a concessional and non-concessional tax basis. There will be tax consequences if you breach these caps. For more detail, speak with a financial adviser or registered tax agent or visit the ATO website.