Turning 60 is a major milestone in life. And super from age 60 unlocks a condition of release that hereafter work in your favour. From age 60 you gain new opportunities to access and manage your retirement savings. Understanding these changes can give you clarity, confidence, and peace of mind when planning for the future.
Accessing Your Super Without Penalties
A common misconception is that you must wait until age 67, the current Age Pension age, to access your super. In fact, from age 60, once you meet a condition of release, you can draw on your super without the restrictions that apply to people under the age of 60.
If you have retired or ceased an employment arrangement, you can:
- Take a lump sum, or
- Start a super pension (regular income stream).
This flexibility allows you to tailor your retirement income to your lifestyle and needs – while also unlocking potential tax benefits.
Transition to Retirement (TTR) Pension
Not ready to retire? At 60, you can begin a Transition to Retirement (TTR) pension. This lets you withdraw up to 10% of your super balance each year while continuing to work.
For example:
- With $400,000 in super, you can access up to $40,000 annually.
- These withdrawals are tax-free once you’re over 60.
A TTR strategy can:
- Boost your income,
- Help you reduce working hours, or
- Allow you to salary sacrifice more into super without reducing your take-home pay.
Note: While TTR payments after age 60 are tax-free, investment earnings within the fund are still taxed at up to 15%.
The Tax-Free Pension Phase
The biggest benefit at 60 is the ability to move your super into the retirement (pension) phase. From this point:
- Pension payments are tax-free, and
- Investment earnings inside your pension account are also tax-free (does not apply to Transition to Retirement (TTR) Pension)
Example:
Sarah, aged 61, has $500,000 in super. She retires and starts a pension paying $50,000 a year. She receives the full $50,000 with no tax deducted, while the remaining $450,000 keeps growing free of tax.
Age 60 Super Checklist
Lifestyle planning
- Estimate your retirement income needs.
- Decide on lump sum vs pension income.
- Plan how long your super needs to last.
Documentation
- Update your beneficiary nominations.
- Keep cessation of employment papers if retiring.
- Review insurance held within super.
Financial review
- Calculate your total balance across all funds.
- Revisit your investment strategy for retirement.
- Coordinate super income with other income sources.
- Discuss pension options and timing with a financial adviser.
- Check for impacts on Age Pension or other entitlements.
Final Thoughts: How We Can Help
Reaching age 60 opens exciting new possibilities in how you use your super. The key is to make informed choices that support your goals and lifestyle.
Our experienced advisers can help you:
- Understand the rules,
- Maximise your retirement income, and
- Create a strategy tailored to you.
To make an appointment with one of the Continuum Financial Planners experienced team –
- phone us on 07 3421 3456, or
- at your convenience, use the linked Book A Meeting facility.
Important note:
This article applies to taxed superannuation funds. If your money is in an untaxed or defined benefit scheme, different rules may apply. A lifetime transfer cap of $2 million currently applies for tax-free pensions. Exceeding the cap may result in ATO penalties.
(This article was originally posted by us in September 2025.)