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Superannuation is a key pillar of the Australian retirement dream, with the super system allowing workers–whether part-time or full-time–to put money away each pay cycle to access when they leave the workforce.
While most Australians are aware that superannuation is designed to be saved for retirement, many may be unsure what age the money in their super account will become available to them.
This article explains what age you can access your superannuation, and other factors that may allow you to access the funds earlier than your retirement date.
Related: What Is Superannuation and How Does it Work?
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When Can You Access Superannuation In Australia?
Your superannuation funds will grow throughout your working life, compounding with each pay cycle, and workers have the ability to make extra super contributions if you wish. While you can add additional funds to your superannuation account, the withdrawing of funds is only available when certain criteria are met.
These are specific rules set out by superannuation laws and are known as “conditions of release”. While these are the overarching super laws, the ATO states that there may be other governing rules set out by specific super providers that are more restrictive. It’s important to check the conditions of your super fund so that you know when you can and cannot access your funds.
In general, however, you can access your super when you:
- Reach your preservation age and retire;
- Reach your preservation age and choose to begin a transition to a retirement income stream while you are still working; or
- Are 65 years old (even if you have not retired)
There are other non-age related circumstances in which you may be able to access super earlier, granted you meet special conditions. These reasons and requirements to access super early are explained in more detail below.
Most Australians, however, will access their superannuation funds upon reaching their preservation age.
Preservation Age Explained
Your preservation age is simply the age you can access your super if you are retired or start a transition to retirement income stream, the ATO explains.
Due to superannuation laws, this preservation age is different depending on when you were born. The different preservation ages and correlating year of birth are:
Once you reach your preservation age, you can access your super either as a regular pension payment or by lump sum withdrawal.
Is Preservation Age the Same As Pension Age?
No, preservation age is not the same as pension age. Preservation age refers to the age that you can access your superannuation upon retirement or while transitioning to a retirement pension account.
The age pension, on the other hand, is a fortnightly payment that helps to provide an income to eligible Australians should they not have enough financial means–such as superannuation–to comfortably retire.
The pension age is being gradually increased from 65 to 67 years, and is also dependent on your year of birth.
Accessing Super Early
There are a few exceptions which allow you to access the funds in your superannuation account early. These are limited, and may only allow you to withdraw a certain amount from your superannuation account depending on the reason, your age and more.
Compassionate Grounds
Australians may be allowed to withdraw some of their super on compassionate grounds if money is required to afford:
- Medical treatment and medical transport for you or your dependant;
- Making a payment on a home loan or council rates so you don’t lose your home;
- Modifying your home or vehicle to accommodate your severe disability or your dependant’s severe disability;
- Palliative care for you or your dependant; or
- Expenses associated with the death, funeral or burial of your dependant.
To receive access to your super on compassionate grounds, you need to apply via the ATO. The tax office recommends applicants wait for the outcome of their application before booking the treatment or services required.
The ATO will assess each application individually against legislative requirements, with no guarantee of approval.
The tax office states that early access due to compassionate grounds is only available “if you have no other means of paying for these expenses”.
“The amount of super you can withdraw is limited to what you reasonably need to meet the unpaid expense,” the ATO website reads.
Terminal Medical Condition
If you are diagnosed with a terminal medical condition, you may be eligible to access your super following your diagnosis. The ATO states that access will only be granted if all of the following conditions are met:
- Two registered medical practitioners have certified, jointly or separately, that you suffer from an illness or injury that is likely to result in death within 24 months of the date of signing the certificate.
- At least one of the registered medical practitioners is a specialist practising in an area related to your illness or injury.
- The 24-month certification period has not ended.
If you meet the above criteria, you can then contact your superannuation fund to request access to your money. Your super must be paid out as a lump sum when accessing it early due to a terminal medical condition, the ATO explains.
Temporary or Permanent Incapacity
If you are temporarily unable to work or need to work fewer hours due to a physical or mental medical condition, you may be able to access some of your super early.
If you are permanently incapacitated, you may also be able to withdraw from your super–known as the ‘permanent disability super benefit’.
Super payments will be made in regular payments over the time period you are unable to work, if claiming temporary incapacity. For permanent incapacity, super payments can also be paid in regular payments as an income stream or as a lump sum.
To access super due to temporary or permanent incapacity, you will need to contact your superannuation provider.
First Home Super Saver Scheme
Australians looking to purchase their first home can apply to release voluntary concessional (pre-tax) and voluntary non-concessional (after-tax) contributions that have been made to their super fund since July 1, 2017. This is known as the first home super saver scheme (FHSS).
To have funds released under the FHSS you must meet certain criteria. This includes being over 18 years old; never having owned a property in Australia; and not having previously released funds via the FHSS.
To apply, Australians can do so via the ATO. Eligibility is assessed on an individual basis.
Severe Financial Hardship
If you are facing severe financial hardship, you may be able to withdraw some of your super in order to provide financial assistance. This is not determined or administrated by the ATO; instead, access to your superannuation on grounds of financial hardship is determined by your super fund.
This means you need to contact your super fund to see if you are eligible to access a release of funds on this basis.
The Tax Office states on its website that if a super provider requests evidence of financial hardship upon an individual submitting an application, you can ask Services Australia to provide a letter as evidence. This letter will confirm you have received eligible government income support payments for the relevant period.
Your preservation age will also play a role in determining your eligibility for a release of super due to severe financial hardship.
A Super Balance Under $200
For those with a super balance under $200, you should be able to access your funds early. This may occur if your employment is terminated and the balance of your super account is less than $200, or if you have found a ‘lost super’ account with a balance of less than $200.
The ATO cannot provide access to your funds under this condition; instead, you will need to contact the provider of your super fund that has the balance under $200 to request access.
No tax is payable when accessing super accounts with a balance less than $200, the ATO explains.
Beware: Superannuation Scams and Schemes
For Australians wondering what age they can access their superannuation, and if there are any ways they can access their superannuation before reaching the preservation age, the ATO warns against falling into the trap of scams and fraudulent schemes.
A common scam is promoters claiming early access to super by transferring it from your fund into a self-managed super fund–which they will create on your behalf.
Often they claim this ‘early-received super’ can be used to pay for personal expenses, such as paying off credit card debt, purchasing a house or a car;, or to put towards a holiday.
The ATO urges Australians to check that any financial advisor is licensed before taking financial advice, whether in regards to accessing superannuation or any other financial matters. You can do this via the Moneysmart website.
There are severe consequences for accessing your superannuation early via illegal means.
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Frequently Asked Questions (FAQs)
What age can I access my superannuation funds?
Australians can access their superannuation upon reaching their ‘preservation age’ and retiring. For most Australians, preservation age is between 55 and 60 years old. The exact year depends on the year you were born, as detailed below:
How do I apply to access my super?
How you can apply to access your superannuation will depend on your superannuation fund and the reason you are wishing to access your funds. While most Australians will access their super upon retirement, some may need to access their funds early: such as in times of severe financial hardship or when diagnosed with a terminal illness.
To find out exactly how to apply to access your super, you should contact your superannuation fund.
Can I access my super early?
There are some extenuating circumstances in which you can access your superannuation before you reach your preservation age and retire. As outlined by the ATO, these circumstances are:
- Access on compassionate grounds;
- Access due to a terminal medical condition;
- Access due to severe financial hardship;
- Access due to temporary incapacity;
- Access due to permanent incapacity; or
- A super balance less than $200
What is the best super fund in Australia?
There are many superannuation funds to choose from in Australia. When starting a job, workers can nominate a superannuation fund of their choice, or use the default fund of their employer.
In terms of the best super fund in Australia, Forbes Advisor analysed the market and found that AustralianSuper was the highest rated due to its consistent returns and manageable annual administration fee compared to other funds.
