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 $1.9 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.
Turning 60 changes everything with your super. Tax-free access, pension phase, new rules. Here’s what opens up and what to watch out for.
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.
You Can Access Your Super Tax-Free
| Source / Type | Inside Super | Withdrawal at 60+ |
|---|---|---|
| Concessional contributions (in) | 15% (+15% Div 293 if income > $250K) | , |
| Non-concessional contributions (in) | 0% | , |
| Earnings. Accumulation phase | 15% | , |
| Earnings. Pension phase (up to $1.9M cap) | 0% | , |
| Lump sum withdrawal | , | Tax-free |
| Account-based pension payment | , | Tax-free |
Source: ATO, Tax on super at age 60 and over, current as at 2025-26. Transfer balance cap is $1.9 million for 2025-26.
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.
You Do Not Have to Retire to Access Super
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.
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.
Key Decisions to Make at 60
Turning 60 is a decision point. Here are the questions worth addressing:
Should I consolidate my super?
If you have multiple super accounts, now is a good time to consolidate. 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, particularly if your health has changed since the policy was issued.
Is my investment mix still right?
The investment mix that worked during your accumulation years might not suit the drawdown phase. You may want to reduce exposure to high-growth, volatile assets and increase your allocation to defensive investments that provide more stable returns. But don’t be too conservative. Your super may need to last 25 to 30 years, and you still need growth to outpace inflation.
Should I start a pension or take a lump sum?
Starting an account-based pension provides a regular income stream and keeps your money in the super environment where investment earnings may be tax-free (up to the transfer balance cap of $1.9 million). Taking a lump sum gives you immediate access but moves the money outside super, where investment earnings become taxable.
For most people, a combination works best: start a pension for regular income and retain some in accumulation if your balance exceeds the transfer balance cap.
What about insurance inside super?
Many people hold life insurance, TPD, and income protection insurance through their super fund. As you approach retirement, review whether these policies are still needed. Life insurance premiums increase with age and can erode your balance significantly in your 60s. If your debts are paid off and your dependants are financially self-sufficient, you may no longer need the same level of cover.
The Transfer Balance Cap
When you start a retirement phase pension, the amount you transfer is counted against your transfer balance cap (currently $1.9 million, 2025/26). 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%.
If your super balance is approaching or exceeding $1.9 million, the sequencing and timing of your pension commencement matters. Getting this right can save you significant tax over the life of your retirement.
The rules at 60 are different. Want to know what they mean for you?
Don’t rush. Don’t wait too long either.
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.
What Should You Do Next?
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.
At Great Advice, across south-east Queensland we help people work through this exact transition every day. If you are approaching 60 and want to understand your options, book a meeting and we will help you build a clear plan.
Call 07 3290 0393
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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 $1.9 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 $1.9M 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.
References
- Australian Taxation Office (ATO), Preservation Age and Conditions of Release.
- Australian Taxation Office (ATO), Tax on Super Benefits: Lump Sum and Income Stream.
- Australian Taxation Office (ATO), Transition to Retirement Income Streams.
- Australian Taxation Office (ATO), Transfer Balance Cap.
- Australian Taxation Office (ATO), Key Superannuation Rates and Thresholds: Contributions Caps.
- MoneySmart (ASIC), Super Withdrawal Options.
- MoneySmart (ASIC), Account-Based Pensions.
General Advice Warning: This article contains general information only and does not take into account your individual objectives, financial situation, or needs. Superannuation rules are complex and the strategies discussed may not be suitable for everyone. Before making any financial decisions, you should 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).
