What happens to your super when you turn 60?
Three things change at 60: super withdrawals from a taxed fund become tax-free, you can start an account-based pension and pay zero tax on investment earnings (up to the $2.0 million transfer balance cap, 2025-26), and once you've met a condition of release, you've got full access to your balance. The decisions you make in the next 12 months can shape the next 30 years of retirement income.
How much tax will I pay on super after 60?
$0 tax
Once you turn 60, any withdrawals from a taxed super fund are completely tax-free. This applies to both lump sum withdrawals and pension payments. There is no limit on the amount you can withdraw (subject to your account balance), and you do not need to include these amounts in your tax return.
That’s a big change from before preservation age, where withdrawals may include a taxable component. After 60, withdrawals from a taxed super fund are straightforward: tax-free. Public-sector and other funds with an untaxed element work differently. If your fund is one of these, the tax treatment isn’t the same.
One exception: if you’ve got an untaxed element in your super (common in some public sector or defined benefit funds), that component may still be taxable on withdrawal. Most people with standard employer super funds will not have an untaxed element.
After 60: what super tax drops to zero
- Concessional contributions (in)15% (+15% Div 293 if income over $250K)
- Non-concessional contributions (in)0%
- Earnings, accumulation phase15%
- Earnings, pension phase (up to $2.0M cap)0%
- Lump sum withdrawal after 60Tax-free
- Account-based pension payment after 60Tax-free
Do I have to retire to access my super?
No. At 60 you've got two main options: leave a job and meet a condition of release for full access, or keep working and draw a Transition to Retirement pension of 4% to 10% of your balance a year.
A lot of people think you have to retire before you can touch your super. That’s not quite right. At 60, you’ve got two main options:
1. Retire and access fully: If you leave employment after turning 60, you meet a “condition of release” and can access your entire super balance: lump sum, pension, or a mix. You don’t have to stop working permanently. If you leave one job at 60, you can access your super and then start a new job without any impact on your entitlement.
2. Keep working and use a Transition to Retirement (TTR) strategy: If you are still working and do not want to retire yet, you can start a Transition to Retirement pension. This allows you to draw an income stream from your super (between 4% and 10% of your balance per year) while continuing to work and receive a salary.
Annual drawdown limits on a Transition to Retirement pension while you continue to work and receive a salary.
A TTR strategy can be used to supplement your income, reduce your working hours, or implement a salary sacrifice arrangement where you redirect pre-tax salary into super while drawing a tax-free pension to replace the lost take-home pay. The net effect can be a tax saving that boosts your overall super balance.
What do I need to sort out at 60?
Four calls: whether to consolidate multiple accounts, whether your investment mix still suits drawdown, whether to start a pension or take a lump sum, and whether the insurance inside your super is still worth the premiums.
Three things change at 60: super withdrawals from a taxed fund become tax-free, you can start an account-based pension and pay zero tax on investment earnings (up to the $2.0 million transfer balance cap, 2025-26), and once you’ve met a condition of release, you’ve got full access to your balance. The decisions you make in the next 12 months can shape the next 30 years of retirement income.
Turning 60 is the most significant milestone in your superannuation journey. The rules around access change substantially, and the strategy you choose from here matters more than at any other point.
If you were born after 30 June 1964, your preservation age is 60, meaning this is the earliest you can access your super (outside of limited hardship provisions). Even if you were born earlier and have a slightly lower preservation age, turning 60 still triggers important tax and access changes.
Here is what you need to know.
Turning 60 is a decision point. Here are the questions worth addressing:
Turning 60 is a decision point. Here are the questions worth addressing:
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Should I consolidate my super?
Multiple accounts mean multiple sets of fees and insurance premiums eroding your balance. Before consolidating, check whether any existing account has insurance cover worth retaining.
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Is my investment mix still right?
The mix that worked in accumulation might not suit drawdown. But don't be too conservative: your super may need to last 25 to 30 years, and you still need growth to outpace inflation.
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Should I start a pension or take a lump sum?
A pension keeps money in super where earnings may be tax-free (up to the transfer balance cap of $2.0 million); a lump sum moves it outside super. For most people, a combination works best.
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What about insurance inside super?
Life insurance premiums increase with age and can erode your balance significantly in your 60s. If debts are paid off and dependants are self-sufficient, you may not need the same level of cover.
Will the transfer balance cap affect me?
Only if your balance is large. The cap (currently $2.0 million, 2025/26) limits how much super you can move into the tax-free pension phase. Any excess stays in accumulation, where earnings are taxed at 15%.
When you start a retirement phase pension, the amount you transfer is counted against your transfer balance cap (currently $2.0 million for 2025/26, rising to $2.1 million from 1 July 2026). This cap limits how much super you can move into the tax-free pension phase. Any excess must remain in accumulation phase, where investment earnings are taxed at 15%.
Any excess above the cap stays in accumulation phase, where investment earnings are taxed at 15%. Earnings in the tax-free pension phase are not taxed.
If your super balance is approaching or exceeding $2.0 million, the sequencing and timing of your pension commencement matters. Getting this right can save you significant tax over the life of your retirement.
Do I need to act straight away?
No deadline. You don't have to walk through every door that opens at 60, and leaving super invested can make sense. But contribution caps, the carry-forward rule and TTR arrangements become less effective the longer you wait.
Turning 60 opens doors, but you don’t have to walk through all of them straight away. There’s no deadline to access your super, and in many cases it makes sense to leave it invested and growing if you are still working and do not need the income.
That said, there are time-sensitive strategies, particularly around contribution caps, the carry-forward rule, and TTR arrangements. These become less effective the longer you wait. If you’re turning 60 in the next year or two, now’s the time to take a look.
The decisions you make around your super at 60 are among the most consequential of your financial life.
The difference between a well-structured retirement and a missed opportunity can be tens of thousands of dollars over the course of your retirement.
on lump sums and pension payments from a taxed super fund.
of retirement income shaped by the decisions you make now.
Common questions
Can I withdraw all my super at 60?
Only if you've met a condition of release, usually by retiring from employment. From 60 onwards, lump sum withdrawals are tax-free. You can also start an account-based pension and draw a tax-free income stream.
Do I have to retire to access my super at 60?
No, but to get full access you need to either retire from a job or start a Transition to Retirement (TTR) pension. From 65, you can access super freely without ceasing work.
How much tax do I pay on super withdrawals at 60?
Nothing. Withdrawals from a taxed super fund are tax-free from age 60. Earnings inside a pension-phase account (up to the $2.0 million transfer balance cap) are also tax-free.
What's a Transition to Retirement (TTR) strategy?
A way to access part of your super while still working. From your preservation age (60), you can draw 4–10% of your super balance as a TTR pension while still receiving employer contributions. It can be tax-effective combined with salary sacrifice.
Should I leave my super in accumulation or move to pension phase at 60?
Pension phase has zero tax on investment earnings up to the $2.0M cap; accumulation is taxed at 15%. If you're drawing income, pension phase usually wins. If you want to keep growing the balance untouched, accumulation has its place.
General Advice Warning: This article contains general information only and does not take into account your individual objectives, financial situation, or needs. Before making any financial decisions, you should consider whether the information is appropriate for your circumstances and seek personal financial advice from a licensed adviser. Great Advice Financial Advisers is a Corporate Authorised Representative of Akumin Financial Planning Pty Ltd (AFSL 232706).
