How much super can I withdraw after 60?
Turning 60 is a milestone—and a natural time to check how and when you can access your super. This guide explains the rules that apply after 60, how much you can withdraw, the tax treatment, and smart strategies to make your savings last. We’ll also cover Transition to Retirement (TTR), lump sums versus income streams, and how withdrawals can affect Age Pension eligibility.
For plain‑English background on accessing super, start with Moneysmart, and see the ATO pages we’ve linked throughout for the technical detail.
The basics: when can you access super after 60?
Access to super is governed by your preservation age and whether you’ve met a condition of release. After 60, many Australians meet one of the key conditions and can access some or all of their benefits.
Common conditions of release after 60
- Retired after reaching preservation age (generally 55–60 depending on birth year).
- Ceased an employment arrangement after age 60 (even if you later take another job).
- Reached age 65 (access allowed whether retired or not).
- Permanent incapacity or terminal medical condition (specific medical criteria apply).
Check the ATO’s guidance on withdrawing and using your super and confirm your preservation age timeline.
How much can you withdraw after 60?
There’s no fixed dollar cap like “$300,000” that limits withdrawals after 60. Once you’ve met a condition of release, you can withdraw any amount up to your available super balance, subject to your fund’s processes and any product rules. The key decision is whether to take a lump sum, start a retirement‑phase income stream, or use a mix.
Two main ways to access super
- Lump sum: one‑off or ad‑hoc withdrawals straight from your super account. Useful for debt clearance or large purchases, but reduces the money left invested.
- Account‑based pension (retirement‑phase income stream): a flexible, tax‑effective regular income with minimum annual drawdowns. Earnings on the assets supporting the pension may be tax‑exempt inside super (subject to ECPI rules).
Read the ATO’s overview of retirement‑phase income streams.
How are withdrawals taxed after 60?
For most people, super withdrawals after 60 are tax‑free, provided the money comes from a taxed source and a condition of release has been met. That includes lump sums and payments from an account‑based pension. There are exceptions—for example, some public sector “untaxed” funds, and certain defined benefit payments—so check your fund’s components.
See the ATO’s tax on super benefits page for details on taxed versus untaxed elements and defined benefit nuances.
Lump sum versus income stream: which suits you?
Lump sum advantages
- Immediate access to capital to clear debt, renovate, or help family.
- Full flexibility—withdraw when needed.
Potential drawbacks
- Sequencing risk if you sell assets at a bad time; less money left invested.
- Can reduce Age Pension entitlement if money ends up in assessable assets like bank accounts or investments.
Account‑based pension advantages
- Regular, flexible income with annual minimum drawdowns only (no maximum).
- Earnings on supporting assets may be tax‑exempt inside super (ECPI).
- Generally tax‑free to the recipient at 60+ for taxed funds.
Potential drawbacks
- Minimum drawdowns apply each year, even when markets are down.
- Amount transferred into retirement phase is limited by the transfer balance cap.
Transfer balance cap: how much can you move into retirement phase?
The transfer balance cap limits how much of your super you can move into retirement‑phase income streams across all funds. Amounts above your personal cap can stay in an accumulation account (where earnings are generally taxed at 15%) or be taken as lump sums.
Read about the cap and how indexation works here: ATO – transfer balance cap.
Minimum pension drawdowns (account‑based pensions)
If you start an account‑based pension, you must withdraw at least a minimum percentage of your pension balance each financial year. Rates increase with age. You can take more than the minimum if needed.
Minimum annual percentages by age
- Under 65: 4%
- 65 to 74: 5%
- 75 to 79: 6%
- 80 to 84: 7%
- 85 to 89: 9%
- 90 to 94: 11%
- 95 or over: 14%
The current table is maintained at ATO – minimum annual payments for retirement‑phase income streams.
Still working? Transition to Retirement (TTR)
If you’ve reached your preservation age but haven’t retired, you can start a Transition to Retirement Income Stream (TRIS) while continuing to work. A TRIS can supplement income or help you salary‑sacrifice more into super. However, earnings on TRIS assets inside super are generally taxed at 15% until you meet a full condition of release. Payments from a TRIS are tax‑free if you’re 60+, taxable with a 15% offset if you’re under 60.
Key TRIS settings
- Minimum annual payment: standard pension minimums apply.
- Maximum annual payment: 10% of the account balance (until converted to retirement phase).
- No transfer balance cap credit until the TRIS converts to retirement phase (for example, when you retire or turn 65).
See the ATO’s guide to Transition to Retirement income streams.
Defined benefit vs accumulation funds
Most Australians are in accumulation funds, where your balance depends on contributions and investment returns. Some older corporate or public sector members have defined benefit entitlements, where benefits are calculated using a formula (salary and service).
Defined benefit payments often have special tax and timing rules, and may count differently towards the transfer balance cap. Ask your fund for a benefit estimate and read its product disclosure for retirement options.
When can you access your super? (Preservation age at a glance)
- 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
- On or after 1 July 1964: 60
Early access and special circumstances
Before meeting a normal condition of release, access is tightly restricted and usually limited to severe financial hardship, compassionate grounds, permanent incapacity, or terminal medical condition. These pathways have strict eligibility rules and tax implications—seek advice first.
Overview: ATO – early access to super.
How withdrawals can affect Age Pension eligibility
Super that remains in the super system after Age Pension age is assessable under the means tests. Lump sums you move to the bank can increase assessable assets and deemed income; starting an account‑based pension can also affect the income test via deeming rules. Plan withdrawals with the means tests in mind.
Read more about the assets test and the income test. If you don’t qualify for the pension, check eligibility for the Commonwealth Seniors Health Card.
Strategies to make withdrawals go further
1) Pair salary sacrifice with a TRIS while working to boost concessional contributions and keep net income steady.
2) Start an account‑based pension for regular, tax‑free income (if 60+) and consider a separate cash bucket for 2–3 years’ payments to reduce sequencing risk.
3) Time asset sales to align with retirement phase and ECPI where possible (seek advice on CGT and ECPI rules).
4) Consider a recontribution strategy: take a lump sum and recontribute as a non‑concessional contribution to increase the tax‑free component, which can reduce death benefits tax to non‑dependants.
5) Use the bring‑forward rules for non‑concessional contributions if you’re eligible, and monitor your transfer balance cap and total super balance.
6) Downsize the family home and use downsizer contributions to move up to the allowed amount per eligible person into super without affecting the non‑concessional cap.
7) Coordinate withdrawals with the Age Pension means tests; model the effect of keeping money in super versus bank accounts.
Useful references: ATO – contribution caps • ATO – bring‑forward rules • ATO – downsizer contributions.
Common mistakes to avoid
- Thinking there’s a flat $300,000 limit on withdrawals after 60—there isn’t. The real constraints are conditions of release and, for pensions, the transfer balance cap.
- Withdrawing too much too soon and missing out on the tax advantages of keeping money in super.
- Forgetting minimum drawdowns on pensions or setting the wrong payment frequency.
- Ignoring the effect on Age Pension means tests when moving money to bank accounts or investments outside super.
- Starting a TRIS and expecting tax‑free fund earnings before meeting a full condition of release.
- Overlooking defined benefit rules, untaxed elements, or legacy product quirks.
Practical steps and checklist
1) Confirm your preservation age and the condition of release you’ll use (retirement, age 65, ceased employment after 60, etc.).
2) Decide between lump sums, an account‑based pension, or a mix. Model cash flow for 3–5 years ahead.
3) If starting a pension, set payment frequency and make sure the minimum will be met each year.
4) Review your investment mix and add a liquidity “bucket” for near‑term income needs.
5) Map out contributions you still plan to make (carry‑forward concessional, bring‑forward non‑concessional, downsizer).
6) If you may qualify for the Age Pension, test different withdrawal scenarios for their means‑test impact.
7) Keep records: product disclosure statements, pension commencement docs, advice records, and ATO references.
Need help deciding how much to withdraw?
We help clients design tax‑smart withdrawal plans, set up pensions, and coordinate Age Pension eligibility where relevant. Book a discovery call or explore our 6‑Step Financial Advice Process. You can also try our free online calculators to model different scenarios.
General information only. This article doesn’t take into account your objectives, financial situation or needs. Rules and thresholds change—always check the linked ATO and Services Australia pages and seek personal advice before acting.
