What are the rules for withdrawing super?

There are a range of conditions that enable you to withdraw your super, in some cases before you retire or reach age 65.

One of these is your preservation age that is the age at which you can access your super under normal circumstances. As of 1 July 2024, the preservation age is 60.

Generally, you can withdraw your super when you meet the preservation age and permanently retire from the workforce.

Other conditions that enable you to withdraw your super

In addition to meeting your preservation age and permanently retiring from the workforce, there are other circumstances that allow you to withdraw your super in Australia, also known as a ‘condition of release’. These include:

• Reaching age 65 – You can access your super if you reach age 65, whether you are working or not
• Reaching preservation age and starting a transition to retirement (TTR) - Some people choose to access their super early through a transition to retirement strategy. If you have reached preservation age (65), this allows you to access a portion of your super while continuing to work. It's important to seek financial advice to determine if this strategy is right for you
• Reaching age 60 and have stopped working: If you are age 60 and no longer working for an employer, you may also meet a ‘condition of release’.

Rules to withdraw your super early

Under limited circumstances, you may be able to access your super early. Some of these include:

• Terminal illness - If you are diagnosed with a terminal illness, you can apply to withdraw your super. In this situation, two medical professionals need to certify that your illness is likely to result in your passing in the next 24 months.
• Severe financial hardship - If you're facing severe financial hardship, you may be able to access your super early. This typically requires proof of your financial difficulties, and you must be receiving Centrelink income support payments for a certain period at the time you apply.
• Permanent disability - If you become permanently disabled and are unlikely to work again, you can access your super early. Two medical practitioners need to certify that, because of your disability, you are unlikely to return to the kind of work you are reasonably qualified for with your education, training or experience.
• Temporary residents leaving Australia – If you are a temporary resident and have left Australia permanently, you can apply to withdraw your super. This process has specific requirements and additional tax will apply to a portion of you super.
• Compassionate grounds - In exceptional circumstances, such as major medical expenses or to prevent foreclosure on your home, you may be able to access your super early on compassionate grounds. This requires approval from the ATO (Australian Taxation Office).
• First Home Super Saver Scheme (FHSSS) - If you're a first-time homebuyer, you can apply to withdraw a portion of your super under the FHSSS to purchase your first home. There are specific rules and limits associated with this scheme.