Summary
Financial hardship eligibility & payments
Every retirement is different, and sometimes illness, unemployment or reduced income can alter our plans for the foreseeable future. Whether you’re needing to draw more from your super or seek financial assistance, there are other options you can turn to if you're eligible.
If you're an Australian citizen or permanent resident, you may be eligible to access some of your super due to severe financial hardship. You can apply for one payment from your super balance (accumulation) in a 12 month period if you're under age 60 (preservation age) plus 39 weeks, you need to meet both these conditions:
- haven't made a withdrawal from any super fund under financial hardship in the past 12 months, and
- are currently receiving and have been receiving eligible Commonwealth income support payments for at least 26 continuous weeks, and
- you are not able to meet reasonable and immediate family living expenses.
Minimum withdrawal is $1,000 up to maximum of $10,000. If your super balance is less than $1,000 then up to your remaining balance after tax.
If you've reached age 60 plus 39 weeks, you need to meet both these conditions:
- you've received eligible Commonwealth income support payment for a cumulative period of at least 39 weeks since reaching your preservation age, and
- you're unemployed or employed for less than 10 hours a week when you make your application for payment under financial hardship.
There are no restrictions on how much you can withdraw if you meet the conditions.
Things you can do once you've turned 60 years old
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 after your turn 60, your super can continue to accrue. You’ll automatically be able to access it once you reach the age of 65.
If you keep working after you turn 60, you could also decide to transition into retirement with AustralianSuper's TTR Income account1. This may allow you to either:
- save more super – by adding to your super from your before-tax salary (using salary sacrifice2), or
- work less – using your super to top up your reduced take-home pay.
-
This account may allow you to cut back the hours you work, while drawing on your super to make up for a reduced income.
READ MORE: TRANSITIONING TO RETIREMENTIf you choose to retire after you’ve turned 60, you’ll be able to start accessing money from your super.
READ MORE: ACCESSING YOUR SUPER IN RETIREMENTStart withdrawing super once you’ve met a condition of release
Once you’re aged 60 to 64 and retire or if you're 65 or older, 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.
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 provides you flexible access to your super savings via regular income payments or lump sum withdrawals, while keeping your balanced invested throughout retirement. You can choose how much and when you want your payments, but you must take a minimum amount every year3. You can also choose to withdraw additional money. Your Choice Income account is flexible so you can also change your payment and investment options at any time.
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. This is also sometimes referred to as your ‘Qualifying Age’. From 1 July 2023, the Age Pension Age is 67 years old4.
Even if you can access your super, you may be a few years away from being eligible to receive the Government Aged 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.
Service Australia (Centrelink) uses 2 tests to work out your eligibility and calculate any Government Age Pension payments you may receive. They are the Assets test and the Income test.
READ MORE: ARE YOU ELIGIBLE FOR THE GOVERNMENT AGE PENSION?
Get support to plan your retirement
If you feel unsure about any of the information above, speaking to a qualified financial adviser can help.
If you’re ready to plan your retirement, we have different ways to help. Register for a webinar and explore our helpful articles and guides. We can also help you connect with an registered financial adviser4, for personal advice tailored to your needs and goals.
Tags:
-
Important Information
- Transition to Retirement (TTR) can be complex and isn’t suited to everyone. It’s a good idea to get financial advice before deciding if a TTR Income account is right for you.
- Salary sacrifice may affect some Government benefits and employee benefits. We recommend you consider seeking financial advice before deciding if a salary sacrifice arrangement is right for you.
- Minimum drawdown amounts apply depending on your age. For more information refer to the Choice Income PDS.
- Personal financial product advice is provided under the Australian Financial Services Licence held by a third party and not by AustralianSuper Pty Ltd. Fees may apply.