Make a financial hardship withdrawal application

Apply for a financial hardship payment by logging into your account. Select ‘make a withdrawal’ and choose ‘financial hardship’ to complete the form.

You will need two of these forms of identification to apply online:

• a valid Passport
• current Driver’s Licence
• current Medicare Card

If you can’t access your account, complete the Apply for a payment (financial hardship) form.

 

Tax on financial hardship payments

Financial hardship payments are taxed as a super lump sum. If you're under 60 years old, this is generally taxed between 17% and 22%. Super withdrawals are tax free for those aged 60 and over.

Accessing your super as a lump sum

If you’re experiencing financial hardship and you’ve reached your preservation age, you can apply to withdraw as much of your super as you wish if:

• You’ve been receiving eligible Commonwealth income support payments for a combined period of at least 39 weeks since reaching your preservation age, and
• You’re unemployed or employed for less than ten hours a week when you make your application for payment under financial hardship.
  
  

Things to consider

While early access to your super or taking it out as a lump sum can provide financial relief, it will also impact the amount you may have when you retire, and it could affect any government benefits you may be receiving or are entitled to receive. Other important things to consider include the impact of tax and any insurance cover you have in super. Before making any financial decision, you may consider seeking financial advice.

 

Preservation age – minimum age to access superannuation

What your preservation age is

Generally, your preservation age is the minimum age you must reach before you can access your super. It varies depending on the year you were born, as you’ll see in this table.

BIRTH YEAR	AGE You can access your super
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
From 1 July 1964	60

Source: Australian Taxation Office. Updated 2 August 2023

 

Other conditions of release for superannuation

In addition to reaching your preservation age, to access your super you’ll also need to:

• have permanently retired, or
• want to transition to retirement while you’re still working.
• Ceased an employment arrangement on or after aged 60.

Regardless of your circumstances and whether you’re working, everyone can access their super at age 65. At this age, even if you’re still working, you’ll have full access to your super.

 

Accessing super before your preservation age

In some cases, you may be able to access your super before your preservation age, such as:

• severe financial hardship
• compassionate grounds
• terminal illness or permanent incapacity
• if you’re a temporary resident who’s permanently leaving Australia.
  
  

Things you can do once you reach your preservation age 

Choose to retire or keep working 

You don’t need to retire if you don’t want to. If you continue working and earning an income beyond your preservation age, your super will continue to accrue. You’ll automatically be able to access it once you reach the age of 65. 

If you keep working after you reach your preservation age, you could also decide to transition into retirement with AustralianSuper's TTR Income account¹. This may allow you to cut back the hours you work to either:

• save more super – by adding to your super from your before-tax salary (using salary sacrifice¹), or

• work less – using your super to top up your reduced take-home pay.

If you choose to retire after you’ve reached your preservation age, you’ll be able to start accessing money from your super.  Consider tax implications and any impact on government benefits it may have.

 

If you choose to retire after you’ve reached your preservation age, you’ll be able to start accessing money from your super. 

Start withdrawing super once you’ve met a condition of release² 

Once you’ve reached preservation age and retire or are over the age of 65, there are several ways you can access your super: 

• You can take your super as a lump sum
• You can set up an account-based pension and draw a regular income, while your super stays invested
• Or a combination of both.

Keeping your super invested means you could continue to benefit from investment returns in retirement

AustralianSuper’s account-based pension is called Choice Income. It allows you to receive regular income, a bit like receiving a salary. You can choose to be paid fortnightly, monthly, quarterly, half yearly or yearly. It's up to you, but you must take a minimum amount every year based on your age.

Learn more about minimum payments. 

Your Choice Income account is flexible so you can also take a lump sum, change your payments and investment options at any time³.

Read more: australiansuper.com/minimumdrawdowns

Age Pension age – minimum age to access the Government Age Pension

What your Age Pension age is

Your Age Pension age is the age at which you're able to access the Government Age Pension, if you meet eligibility requirements.

The following table can help you find your Age Pension age:

BIRTH YEAR	AGE YOU MAY QUALIFY FOR THE PENSION
From 1 July 1952 to 31 December 1953	65 years 6 months
From 1 January 1954 to 30 June 1955	66 years
From 1 July 1955 to 31 December 1956	66 years 6 months
On, or after 1 January 1957	67 years

Source: Services Australia, 2023

 

Your Age Pension age is higher than your preservation age. That means that even if you’ve reached the age you can access your super you may be some years away from being eligible to receive the Government Age Pension.

 

Other eligibility requirements for the Government Age Pension

There are other factors that determine your eligibility for the Government Age Pension, including your:

• residency status;
• income; and
• assets.

Centrelink uses two means tests to work out your eligibility and calculate any Government Age Pension payments you may receive. These are the assets test and the income test.

Get support to plan your retirement

If you feel unsure about any of the information above, speak to a qualified financial adviser who can help clarify things for you. 

If you’re ready to plan your retirement, we have different ways to help. Register for a free webinar and explore our helpful articles and guides. We can also help you connect with an accredited financial adviser⁴, for personal advice tailored to your needs and goals⁴.