When can I retire?
The short answer is whenever you like, but the more important consideration is when you can access your super.
Legally Australians can retire at any age. You may decide to first reduce your working hours or simply stop working altogether. However, what’s critical to know is when you can access your super in order to be able to support yourself and your family during retirement.
There are two terms you are likely to come across when thinking about when you retire.
Preservation age
Generally speaking, this is the earliest age that you can access your super under normal circumstances. It is calculated based on your year of birth. Your preservation age is not the same as your pension age.
Learn more about Preservation ageAge pension age
This is the age when you can access Australia’s Age Pension, provided that you meet certain eligibility criteria. It is calculated based on your date of birth.
Learn more about Age pension age
When can I access my super?
Generally, it’s only possible to access your super after you’ve reached your preservation age and retired from gainful employment OR met some other condition of release. Preservation age is between the age of 55–60, depending on when you were born. Look at the table below to find out when you will reach preservation age.
Explore our Retirement guides and workbook
If you’re 10 or more years from retiring, read our Preparing for retirement guide. You’ll learn how to track your super, set retirement goals and establish a timeline.
Preservation age
Once you have reached preservation age you may be able to access some of your super, but not all of it. Only once you have met a condition of release can you access all of your super.
| Date of birth | Preservation age |
|---|---|
| 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 |
Conditions of release
To access all of your super
You can start accessing some of your super while you’re still working, once you’ve reached your ‘preservation age’, in the form of an income stream. However, in order to withdraw your super as a cash lump sum, you need to also meet a condition of release.
Conditions of release that allow you to receive a lump sum (you can access your total super balance or a partial amount) from your super include:
- Reaching your preservation age and fully retiring
- Ceasing gainful employment with an employer after turning 60
- Turning 65 (even if you’re still working)
- There are also some special cases where you may be able to access part or all of your super early:
You may be able access a portion of your super in the form of an income stream while still working.
Transition to retirement (TTR) pension
To access some of your super
If you’ve reached your preservation age and are under 65, but you’re not quite ready to permanently retire and haven’t met a condition of release, you can still access a portion of your super through a transition to retirement (TTR) pension.
A TTR is an account-based pension that provides regular payments from your super. However, with a TTR it’s only possible to withdraw between 4–10% of your super savings every financial year.
Accessing a TTR could:
- allow you to reduce your working hours, or pay more into your super as before-tax (salary sacrifice) contributions, and top up the pay you miss out on with regular payments from your income stream account
- help you reduce tax if you’re under 60—and the income stream payments are tax free if you’re 60 or older
- allow you to keep your super balance invested while you access some of your super savings.
For more information about the transition to retirement strategy, visit the Australian Government’s website MoneySmart.
If you’re considering whether or not this strategy is the right approach for you, we recommend you read the Product Disclosure Statement or speak to a financial adviser1.
1CSC’s authorised financial planners provide a financial advice service that can assist you in reaching your financial goals. It is ‘fee for service’ advice, which means you receive a fixed quote upfront. There are no obligations, commissions or hidden fees. To arrange an initial appointment please call 1300 277 777 during business hours.
CSCri and CSC Retirement Profiles are not currently available to ADF customers. CSC is working with relevant Australian Government departments to enable CSC to offer an account-based pension product such as CSCri to our ADF customers where possible. For more information read our CSC retirement income strategy.
Financial planning
Step by step advice to help you get to your financial goals
Deciding to Retire
Why do people retire?
Deciding when to retire is a personal decision, but there are five common factors that generally influence the retirement decision for most people. It’s good to keep these on your radar, as they can often trigger a decision to retire earlier than expected.
Health
You may have a health scare or issue that means you can no longer do your job. You may also decide to retire to care for a loved one.
Work
The demands of work can become more tiring as you get older, or you may be unable to find work as a result of redundancy or the end of a work contract.
Friends and family
Retirement may be appealing if your friends or family are enjoying retirement.
Financial independence
You may reach pension age, receive a financial windfall, or find that you have more financial resources after children leave home.
The right time
It may simply feel like ‘the right time’.
