Customer Education
Superannuation & Investments
When can you access your super
- Preserved benefits
- Unrestricted non-preserved benefits
- Restricted non-preserved benefits
- When are you required to withdraw your benefits from super?
- What happens when you retire?
To ensure that your super is used for your retirement, the Government has placed restrictions on when you can withdraw money that you have invested in super. This is why super is generally considered a long-term investment.
The rules which determine when you can access your super are called ‘conditions of release’. They vary depending on the ‘preservation’ status of your benefits, as detailed below.
Preserved benefits
Any contributions that you, your employer or your spouse have made to super from 1 July 1999, or that you receive as a Government co-contribution, are classified as ‘preserved benefits’. Preserved benefits also can include any employer termination payments that have been rolled over into super from 1 July 2004.
As the name implies, preserved benefits, including all earnings on benefits, must be maintained within a super fund and cannot be accessed until you meet a ‘condition of release’.
Please note that from 1 July 2007 any employment termination payments (eg a redundancy benefit paid by an employer) are prohibited from being rolled into a super fund. Note - transitional arrangements may apply in some circumstances (please contact your Financial Adviser for details on transitional arrangements).
You will not be able to access your super benefits until you meet one of the following conditions of release, ie you:
- cease employment after either attaining your ‘preservation age’ (as shown in the following table) or attaining age 60 and retire (ie intend never to become gainfully employed on a full time or part time basis again)
Date of birth |
Preservation age |
Before 1 July 1960 |
55 |
1 July 1960 to 30 June 1961 |
56 |
1 July 1961 to 30 June 1962 |
57 |
1 July 1962 to 30 June 1963 |
58 |
1 July 1963 to 30 June 1964 |
59 |
After 30 June 1964 |
60 |
- reach your preservation age as shown in the table above and the benefit is to be paid in the form of a transition to retirement income stream, non-commutable annuity/pension, or a non-commutable allocated annuity/allocated pension
- have attained the age of 60 on or before a gainful employment arrangement has come to an end
- suffer permanent incapacity (as defined and subject to any conditions prescribed in superannuation law)
- reach age 65
- are experiencing severe financial hardship and have been in receipt of social security payments for a cumulative period of 39 weeks after reaching your preservation age and are not working 10 hours or more a week (some benefits may be available if you are under preservation age and have been on government support for a continuous period of 26 weeks)
- meet specified compassionate grounds (as determined and approved by the Australian Prudential Regulation Authority (APRA))
- are a lost Member who is found, and the value of your benefit in the Fund when released is less than $200
- are an eligible temporary resident who has permanently departed Australia, or
- have a preserved benefit of less than $200 and you terminate employment with your employer sponsor.
Unrestricted non-preserved benefits
Unrestricted non-preserved benefits are generally benefits that you have already become entitled to receive but have voluntarily decided to keep within the super environment. They can be paid out to you at any time on demand, irrespective of age, employment situation or financial position.
Restricted non-preserved benefits
Restricted non-preserved benefits are generally benefits that have arisen due to personal contributions that you have made to super during the period 1 July 1983 to 30 June 1999, for which you have not claimed a tax deduction.
Restricted non-preserved benefits can only be withdrawn if you meet one of the conditions of release as listed for preserved benefits or, if you leave your employer and your employer has been paying contributions into the fund you are withdrawing benefits from.
When are you required to withdraw your benefits from super?
Under new super law, you are no longer required to take your super benefits in cash or commence a retirement income stream when you are aged 65 or over. This means you are able to stay within the accumulation phase of super indefinitely, regardless of your age or work status.
What happens when you retire?
Upon retirement and subject to preservation requirements, you generally have five options:
Option 1
Transfer your super to a pension or annuity and receive regular income payments.
Option 2
Withdraw your super as a single lump sum.
Option 3
Take part of your super as a lump sum and receive the balance as regular payments from a pension or an annuity.
Option 4
Keep your super in a super fund.
Option 5
A combination of options 1 to 4.
We recommend that you speak with your (or the Plan’s) Financial Adviser prior to your retirement.
If you do not have a Financial Adviser we can arrange for a complete analysis of your financial needs by contacting one of our Customer Service Consultants on Freecall 1800 101 014, Monday – Friday, 8.30-5.30pm (EST).
