Most Australians know their super is locked away until retirement. What fewer people know is exactly when they can access it, what conditions they need to meet, how much tax they’ll pay, and what options they have when they get there.
Getting these decisions right, particularly around timing and structure, can make a significant difference to how long your money lasts. Getting them wrong can mean unnecessary tax, reduced Age Pension eligibility, or locking yourself out of options you didn’t know you had.
Here’s a complete plain-English guide to how super withdrawal works in Australia in 2026.
When Can You Withdraw Your Super in Australia?
You can generally withdraw your super when you meet a condition of release. The most common conditions are:
- You have reached your preservation age (currently 60 for most Australians) and have retired
- You have reached age 65, regardless of whether you are still working
- You have started a transition to retirement (TTR) pension after reaching preservation age, even if still working
Until you meet one of these conditions, your super is preserved. It cannot be accessed as a lump sum or income stream, with very limited exceptions covered below.
What Is Preservation Age in Australia?
Preservation age is the minimum age at which you can access your super, provided you also meet a condition of release such as retirement.
For anyone born after 1 July 1964, preservation age is 60. This applies to the vast majority of working Australians today.
| Date of birth | Preservation age |
|---|---|
| Before 1 July 1960 | 55 |
| 1 July 1960 to 30 June 1961 | 56 |
| 1 July 1961 to 30 June 1962 | 57 |
| 1 July 1962 to 30 June 1963 | 58 |
| 1 July 1963 to 30 June 1964 | 59 |
| After 1 July 1964 | 60 |
Source: ATO: Super withdrawal options
Reaching preservation age alone is not enough. You must also meet a condition of release. The main one is retirement, which means you have left your current employment arrangement with no intention to return to work in any capacity (or work no more than 10 hours per week if you’re aged 60 to 64).
At age 65, you can withdraw your super without any employment requirement. You can be still working full-time at 65 and access your entire super balance.
Scott and Phil covered the common myths around preservation age in Episode 18 of the Wealthlab Podcast: “Is 61 the New Retirement Age in Australia?” including why “preservation age” and “retirement age” are not the same thing, and why a lot of people get confused between the two.
How to Withdraw Super: Lump Sum vs Account-Based Pension
Once you’ve met a condition of release, you have two main choices about how to withdraw your super: take a lump sum, leave it invested as an account-based pension, or a combination of both.
Lump Sum Withdrawal
A lump sum is a one-off payment of some or all of your super balance paid directly into your nominated Australian bank account. You can take a partial lump sum and leave the rest invested, or withdraw the entire balance at once.
Lump sums are useful for paying off a mortgage, funding a major purchase, or consolidating assets. The main risk is spending a large sum quickly and then having less capital to generate ongoing income.
Account-Based Pension
An account-based pension converts your super into a regular income stream. Your balance stays invested inside the super system (now in pension phase, which is tax-free on earnings), and you draw a set amount each year above the government’s minimum drawdown rate.
The minimum drawdown rates in 2025-26 are:
| Age | Minimum annual drawdown |
|---|---|
| Under 65 | 4% |
| 65 to 74 | 5% |
| 75 to 79 | 6% |
| 80 to 84 | 7% |
| 85 to 89 | 9% |
| 90 to 94 | 11% |
| 95 and over | 14% |
Source: ATO: Account-based pensions
There is no maximum drawdown limit on an account-based pension. You can draw more than the minimum if you need to.
The account-based pension is the most common retirement structure for Australians because it keeps your savings invested and growing while providing regular income, and the investment earnings are completely tax-free once you’re in pension phase.
Tax on Super Withdrawals in Australia
How much tax you pay on a super withdrawal depends on your age, the components of your super balance, and whether you take a lump sum or pension.
If you’re aged 60 or over
Withdrawals from a taxed super fund (which applies to the vast majority of Australians in industry or retail funds) are completely tax-free after age 60. This applies to both lump sums and account-based pension income.
This is one of the most powerful tax advantages in the Australian system. A retired person drawing $70,000 a year from their super after age 60 pays zero tax on that income from super.
If you’re between preservation age and 60
Withdrawals before age 60 are subject to tax on the taxable component of your balance. The tax-free threshold on lump sums is $245,000 (the low-rate cap for 2025-26). Amounts above this are taxed at 15% plus the Medicare levy. Income stream payments are taxed at your marginal rate with a 15% tax offset.
This is why the timing of retirement relative to age 60 matters. Retiring at 58 with a large super balance can result in meaningful tax that would have been zero if you’d waited two years.
Earnings in pension phase
Once your super moves into pension phase (account-based pension), earnings on the invested assets are completely tax-free. This is a change from the accumulation phase, where earnings are taxed at 15%.
Transition to Retirement (TTR): Accessing Super While Still Working
If you’ve reached preservation age (60 for most people) but haven’t fully retired, you can access your super through a Transition to Retirement (TTR) pension while continuing to work.
A TTR pension lets you draw between 4% and 10% of your super balance each year as income while your employer continues contributing the 12% SG rate into your fund. This can be useful for:
- Reducing working hours without a sharp drop in income
- Supplementing income while salary sacrificing more into super
- Smoothing the transition between full-time work and full retirement
One important distinction: earnings inside a TTR pension are taxed at 15% (the same as accumulation phase), not tax-free. They only become tax-free once you fully retire and convert to a retirement phase pension. We covered this in detail in Episode 18 of the podcast, which explains the difference between TTR and full retirement pensions and why it matters.
For a full breakdown, see our retirement planning service page.
Early Access to Super: When Is It Legal?
Outside of reaching preservation age and retiring, early access to super is only available in very limited circumstances defined by law. These are called compassionate grounds and financial hardship provisions.
Severe financial hardship. If you have been receiving a Commonwealth income support payment continuously for 26 weeks and cannot meet reasonable and immediate family living expenses, you may be able to access between $1,000 and $10,000 from your super. Your fund assesses this, not the ATO.
Compassionate grounds. The ATO can approve early release for specific compassionate reasons, including: unpaid medical expenses for you or a dependant, preventing the foreclosure of your home, palliative care costs, or funeral expenses for a dependant. These applications are assessed by the ATO directly.
Terminal medical condition. If two registered medical practitioners (one a specialist) certify you have a condition likely to result in death within 24 months, you can access your full super balance tax-free.
Permanent incapacity. If you’re unlikely to ever return to work in a capacity for which you are qualified, you can access your super early.
Departing Australia Superannuation Payment (DASP). Temporary residents who worked in Australia and earned super can claim it after permanently departing. Note: DASP is taxed at 65% for taxable components for most visa holders, which is a significant reduction. New Zealand citizens are exempt and can transfer their Australian super to KiwiSaver.
Lost or small balance accounts. If your account balance is less than $200 and your employment has been terminated, you can withdraw the full amount.
Important: It is illegal to access super outside of these conditions. Be extremely cautious of promoters or schemes offering ways to access your super early outside these rules. The ATO actively investigates and prosecutes illegal early access arrangements.
How Much Super Can You Withdraw Per Year?
There is no annual limit on how much you can withdraw from your super once you have met a condition of release and are in the retirement phase. You can take your entire balance as a lump sum if you choose.
If you’re in a TTR pension (still working), the maximum annual drawdown is 10% of your balance per year.
The question most people should be asking isn’t “how much can I withdraw?” but “how much should I withdraw?” Drawing too much too soon reduces the compound growth working on your balance and can affect Age Pension eligibility. Drawing too little means leaving money in super unnecessarily when it could be funding your lifestyle.
A sustainable drawdown strategy typically involves drawing the minimum pension amount in early retirement when you’re active and spending more, then adjusting as spending patterns change with age. Episode 19 of the Wealthlab Podcast, “Is Early Retirement a Trap? The $150K Gap Most Aussies Miss”, covers the spending wave pattern most retirees follow and why the first decade of retirement is often when people spend the most.
For a personalised projection of how long your super will last at different drawdown levels, use the Wealthlab super calculator.
Does Withdrawing Super Affect the Age Pension?
Yes, and this is one of the most commonly misunderstood areas of retirement planning.
Your super balance (while still in accumulation, i.e. before you start drawing it down) is not assessed by Centrelink for the Age Pension assets test if you are below Age Pension age (67). Once you start drawing it down as a pension or take a lump sum, the dynamics change.
An account-based pension is assessed under both the assets test (the balance counts as an asset) and the income test (using deeming rates). A lump sum withdrawn and left in a bank account is also assessed as an asset.
The interaction between super drawdown and Age Pension eligibility is complex and genuinely worth getting right, because the difference between a well-structured and a poorly-structured approach can be worth tens of thousands of dollars in Centrelink entitlements over a retirement. Episode 10 of the podcast, “How the Age Pension Really Works”, walks through real case studies on exactly this.
FAQs: Withdrawing Super in Australia
When can I withdraw my super in Australia?
You can withdraw your super once you meet a condition of release. The most common is reaching preservation age (60 for most Australians) and retiring from work. At age 65, you can access super regardless of your employment status. Source: ATO super withdrawal options.
What is the preservation age for super in Australia?
For anyone born after 1 July 1964, preservation age is 60. For those born before that date, preservation age is between 55 and 59 depending on birth year. Reaching preservation age alone does not give you access to super; you also need to meet a condition of release such as retirement.
How do I withdraw my super as a lump sum?
Contact your super fund directly and request a lump sum withdrawal form. You’ll need to provide your Australian bank account details, confirm you meet a condition of release, and supply your Tax File Number. Most funds process withdrawals within 3 to 5 business days. Withdrawals after age 60 from a taxed fund are tax-free.
Is super withdrawal taxed in Australia?
After age 60, withdrawals from a standard taxed super fund are completely tax-free, including both lump sums and account-based pension income. Between preservation age and 60, lump sum withdrawals up to the low-rate cap ($245,000 in 2025-26) are tax-free, and amounts above are taxed at 15% plus Medicare levy.
Can I access my super at 60 without retiring?
Not as a lump sum or full account-based pension. At 60, you need to have retired (or met another condition of release) to fully access your super. However, you can start a Transition to Retirement (TTR) pension at 60 while still working, which lets you draw up to 10% of your balance per year as income.
Can I withdraw my super early due to financial hardship?
Yes, under strict conditions. If you have received an eligible government income support payment continuously for 26 weeks and cannot meet basic living expenses, you may be able to access between $1,000 and $10,000 from your super. Your super fund administers this, not the ATO. Be aware that early withdrawal reduces your retirement savings significantly due to lost compound growth.
What is the minimum super withdrawal per year in retirement?
Account-based pension minimum drawdowns in 2025-26 range from 4% per year (under 65) to 14% per year (95 and over), based on your account balance at 1 July each year. There is no minimum on lump sum withdrawals. There is no maximum on account-based pension drawdowns in the retirement phase.
Can I withdraw all my super at once?
Yes, once you have met a condition of release (such as retiring after age 60 or turning 65), you can withdraw your entire super balance as a lump sum. Whether you should is a different question. Large lump sum withdrawals can affect Age Pension eligibility and may trigger tax if taken before age 60. Getting financial advice before making large withdrawals is worth the cost.
How does withdrawing super affect the Age Pension?
Super in accumulation phase is not counted by Centrelink for Age Pension purposes if you’re under 67. Once converted to an account-based pension or withdrawn as a lump sum, it becomes an assessable asset under the assets test and income test. The timing and structure of how you draw down super can significantly affect how much Age Pension you receive.
Understanding your super withdrawal options is one of the most valuable things you can do as you approach retirement. The rules around preservation age, conditions of release, tax on withdrawals, and Age Pension interaction all work together to determine your real retirement income.
At Wealthlab, we specialise in helping Australians structure their super withdrawals to maximise income, minimise tax, and protect Age Pension eligibility. Book a free 15-minute call to talk through your situation