Your retirement, your timing
Choosing when to retire is personal – but a few key milestones are worth knowing.
- When you can access your super (more on this below).
- Age 67, when you may be eligible to receive the government Age Pension.
Other personal milestones can also shape when the timing feels right for you.
What's covered in this guide:
Key milestones in preparing for retirement
Your retirement may happen at any time, but certain dates unlock real opportunities.
When can I access my super?
You’ve spent years building your super – now let’s look at when and how you can start using it.
There are two significant ages that determine when you can access your super.
If you're over 60 but under 65
You have unrestricted access to your super if you’ve turned 60 and stopped working.
Or, if you’re still working, you can start a Transition to Retirement (TTR) account and access up to 10% of your account balance, tax free, every financial year.
You may also access tax benefits through this strategy by salary sacrificing to replace any withdrawals you make.
If you're 65 or older
You can access your super with no restrictions, whether you’re still working or fully retired. If you start a retirement income account your withdrawals, pension payments, and investment returns are all tax free.1
Retirement bonus
If you've been with Mercer Super for a year or more, you may be eligible for a one-time bonus payment when you open a Mercer Smart Retirement Income account.2
Find out more about the Mercer Super Retirement Bonus.
If you're younger than 60
Super is designed to help you save for your retirement, but under some circumstances you may be able to withdraw some of your super early. These include:
- Severe financial hardship
- Compassionate grounds
- Terminal illness or permanent incapacity
- Having less than $200 in your super fund
- Saving a deposit for your home
Want help understanding your options?
Our dedicated team of super specialists can help you understand your options, such as how much you might want to contribute to your super, the way it’s invested, or how to access it.
When can I get the government Age Pension?
Many people use the government Age Pension as a valuable way to top up their retirement income. To receive the Age Pension, you need to be 67 years or older. You’ll also need to meet other criteria such as residency requirements, an income test and an assets test.
Find out if you’re eligible
Checking to see if you’re eligible is easy. Mercer Super has teamed up with Retirement Essentials to provide you with a simple eligibility calculator that can also show you how much fortnightly income you might receive from the government. If you’re eligible, Retirement Essentials can also complete the application process for you at a small fee.
Even if you’re not eligible for the government Age Pension, there are other government benefits available that may help you stretch your retirement income further.
And if you’re not eligible for the government Age Pension now you might be later, as your income and or assets reduce over time, so be sure to check back regularly.
These can be complex topics, as always, our friendly super specialists are ready to help you.
Explore more: it’s your time to thrive
Where will my retirement income come from?
Australia’s retirement system is built on three pillars – super, the Age Pension and personal savings. Understanding how they work together puts you in control of your financial future.
How much super will I need?
According to the Australian Bureau of Statistics, many of us can expect to live well into our 80s. How much you’ll need to fund those years depends on your lifestyle and the financial choices you make.
Advice and tools to get you started
Planning for the future can feel daunting. Whether you need a little help or a lot to get on the right track from the start, we’re here to support and guide you.
1 Investment returns can be subject to tax if the total of all of your super and pension accounts exceeds $3m.
2 A ‘retirement income account’ refers to a Mercer SmartRetirement Income, retirement phase, allocated pension account. Transition to Retirement accounts are not eligible for the Retirement Bonus.
* Any information in this material regarding legal, accounting or tax outcomes does not constitute legal advice or an accounting or tax opinion and prior to relying and acting on this information it is important that you seek independent advice from a qualified lawyer or accountant regarding this information. Past performance is not a reliable indicator of future performance. 'MERCER' is a registered trademark of Mercer (Australia) Pty Ltd ABN 32 005 315 917.
The material contained in this document is based on information received in good faith from sources within the market and on our understanding of legislation which we believe to be accurate.
Issued by Mercer Superannuation (Australia) Limited (MSAL) ABN 79 004 717 533, Australian Financial Services Licence #235906, the trustee of Mercer Super Trust ABN 19 905 422 981 (‘Mercer Super’).
Any advice provided is of a general nature and does not take into account your objectives, financial situation or needs. Before acting on any advice we recommend you obtain your own financial advice and consider the Product Disclosure Statement and Financial Services Guide available at mercersuper.com.au. The product’s Target Market Determination setting out the class of people for whom the product may be suitable can be found at mercersuper.com.au/tmd.
‘MERCER’ and 'Mercer SmartPath®' are Australian registered trademarks of Mercer (Australia) Pty Ltd ABN 32 005 315 917.