Superannuation is one of the most important components of retirement planning in Australia. However, many people are surprised to learn there are ways to access your super while continuing to work.
This can help bridge income gaps, support part-time work arrangements, or even give you a head start on enjoying your savings.
If you’re thinking about using your super while you still have an active job, understanding the rules and available options is essential. For personalised financial strategies, it’s worth speaking with a trusted adviser such as freedom finance.
Understanding Super Access Rules
Superannuation is designed as a long-term savings plan for retirement, and the government sets strict rules around when and how it can be accessed. These rules protect your retirement income but also offer flexibility for specific situations.
Preservation Age and Retirement Status
Your preservation age depends on your date of birth and generally ranges between 55 and 60. Once you reach your preservation age, you can potentially access some or all of your super. However, if you are still working, the conditions differ from full retirement.
Meeting a Condition of Release
A “condition of release” is an event or circumstance that allows you to withdraw super. For those who continue working, certain conditions of release—such as a transition-to-retirement income stream—are specifically designed to allow withdrawals without needing to leave your job completely.
Transition to Retirement (TTR) Strategy
One of the most popular ways to access your super while continuing to work is through a Transition to Retirement strategy. This approach allows you to draw an income from your super while still making contributions.
How TTR Works
A TTR income stream lets you start receiving regular payments from your super once you reach preservation age. You can still work full-time or part-time, but the amount you can withdraw annually is capped.
Advantages of TTR
- Boosting Cash Flow – Supplement your wage if you reduce working hours.
- Tax Benefits – After age 60, withdrawals are generally tax-free.
- Flexibility – Adjust payment amounts within limits to suit your lifestyle.
Downsizing Contributions and Access Options
If you are 55 or older and sell your home, you may be able to make a downsizer contribution to your super. While this doesn’t directly give you immediate access to your savings, it can restructure your finances to enable strategic withdrawals.
Selling Your Home to Unlock Funds
The downsizer scheme allows you to contribute up to $300,000 from the sale proceeds of your main residence into your super without the usual contribution caps.
How It Supports Ongoing Work
You can continue working and still benefit from this measure by having a larger super balance available for TTR income or future retirement planning.
Partial Lump Sum Withdrawals
Another option for ways to access your super while continuing to work is making a partial lump sum withdrawal—if you meet a relevant condition of release.
When Partial Withdrawals Apply
You might qualify for partial withdrawals if you have reached preservation age and are working part-time, or if you have reached age 65 (when access is unrestricted, regardless of employment status).
Benefits and Considerations
- Immediate Access – Useful for paying off debts or funding large purchases.
- Impact on Retirement Savings – Reduces future income potential, so careful planning is essential.
Access After Age 65
From age 65, you can access your super in any form—lump sum or income stream—without having to retire.
Working Beyond 65
Many Australians work past 65, either full-time or part-time. You can draw from your super to top up your earnings, manage living expenses, or fund lifestyle choices.
Salary Sacrifice and Super Access
Combining super withdrawals with salary sacrifice contributions can be a powerful approach.
How It Works
- Withdraw a set amount from your super using a TTR income stream.
- Increase your pre-tax salary sacrifice contributions to replenish your account and take advantage of concessional tax rates.
Key Benefits
- Maintains or grows super balance.
- Reduces taxable income.
- Offers more control over take-home pay.
Compassionate Grounds and Severe Financial Hardship
Although less common for those still working, there are provisions for early access in specific personal circumstances.
Compassionate Grounds
This includes situations such as paying for medical treatment, funeral expenses, or preventing the loss of your home.
Severe Financial Hardship
If you meet certain criteria, you may be able to withdraw part of your super to cover essential living costs.
Tax Implications of Accessing Super While Working
Tax treatment depends on your age, the type of withdrawal, and whether your super is in the taxable or tax-free component.
Under Preservation Age
Withdrawals are generally taxed at your marginal rate, less a 30% offset for the taxable portion.
Between Preservation Age and 60
You may pay less tax due to concessional treatment of lump sums and income streams.
Age 60 and Over
Most withdrawals are tax-free, making it an attractive time to start accessing super while still earning a wage.
Steps to Plan Your Super Access
Planning is essential to make sure you do not undermine your retirement savings.
1. Assess Your Eligibility
Check your preservation age, work status, and potential conditions of release.
2. Review Your Super Balance
Understand how much you have and how long it needs to last.
3. Decide on Withdrawal Method
Consider lump sums, TTR income streams, or a mix of both.
4. Seek Professional Advice
Financial advisers can tailor a plan based on your goals, tax position, and retirement timeline.
Risks to Consider
Accessing super early can have long-term consequences.
Longevity Risk
Drawing down your super too quickly can leave you short later in life.
Market Fluctuations
If your super is invested in growth assets, market downturns can impact your balance, especially if you’re making withdrawals.
Balancing Work, Super, and Retirement Goals
The goal is to strike the right balance between present needs and future security.
Adjusting Work Hours
If you want to reduce hours, super withdrawals can fill the income gap.
Maintaining Contributions
Continuing to contribute—either personally or through employer contributions—can help offset withdrawals.
Conclusion
Accessing your super while you continue to work is possible through several pathways, from Transition to Retirement strategies to partial lump sum withdrawals and unrestricted access after age 65. Each option comes with its own rules, benefits, and risks.
By understanding the conditions of release, tax implications, and how withdrawals can impact your future balance, you can make decisions that support both your current lifestyle and long-term security.
Frequently Asked Questions
Can I access my super and still work full-time?
Yes, through a Transition to Retirement income stream once you reach preservation age, or without restrictions from age 65.
Will accessing my super while working affect my tax?
It depends on your age and withdrawal type. After age 60, most withdrawals are tax-free, but before then, tax may apply.
Can I take a lump sum and keep working?
Yes, if you meet certain conditions of release—such as reaching preservation age and partially retiring, or reaching age 65.