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.
