Yes, you can withdraw your entire superannuation balance and continue working, but generally only after you turn 65, as you have unrestricted access to funds regardless of employment status. Between ages 60 and 64, you can access your super if you retire or leave a job, allowing you to return to work later.
Age 65 or over
You can generally access your super, without restrictions, even if you're still working.
Super lump sum
If your super fund allows it, you may be able to withdraw some or all of your super in one or more 'lump sum' payments. However, if you ask your fund to make regular payments from your super it may be an income stream. Once you take a lump sum out of your super, it is no longer considered to be super.
Am I eligible to use my super to pay off my debts? You may be able to access your super early in limited circumstances: in broad terms, on the grounds of severe financial hardship or for compassionate reasons. Before applying, it's important to understand the long-term impact.
You could take your whole pension pot as one lump sum. But 75% of it is taxable in the same way as other income like your salary. So, by taking it all in the same tax year, you could end up with a big tax bill. Plus, you'll need to plan how you're going to provide an income for the rest of your life.
Want to know if you can start taking money from your pension but keep working and saving? The short answer is yes, you can.
You can only cash out your pension fund if you withdraw from the pension fund, in other words, when you resign or lose your job. Losing your job and retiring, however, are two different scenarios: If you retire, you can only cash out up to one-third, and the balance must be used to purchase an annuity.
The minimum amount that can be withdrawn is $1,000 and the maximum is $10,000. If your super balance is less than $1,000 you can withdraw up to your remaining balance after tax. You can only make one withdrawal in any 12-month period.
Make a partial or full withdrawal
You can withdraw some or all your super savings to your nominated bank account. The fastest way for you to make a partial withdrawal is by logging into your account online and going to Transactions. Or complete this form to make a full withdrawal.
On 1 July 2025, the general Transfer Balance Cap — the limit on how much you can move from your super into the retirement phase — will increase from $1.9 million to $2 million.
We'll review it and make a payment to your bank within 5 business days. If we have your mobile number, we'll text you to confirm we've made the payment. Your bank may take another 2-3 days to allocate the money to your account.
If you leave your job or retire, you may be able to withdraw funds without penalty — even if you're under retirement age. If, however, you are still employed with your employer, you must qualify for an “unforeseeable emergency” to take a withdrawal without paying a penalty to the IRS.
The bring-forward rule enables you to accelerate your super contributions by using up to three years' worth of non-concessional (after-tax) contributions caps in a single year. This means you could contribute up to three times the annual limit in one go, or spread your contribution out over two to three years.
To minimize taxes on a lump sum, rollover retirement funds to IRAs/401(k)s to defer taxes, use structured settlements for legal payouts to spread income over years and stay in lower tax brackets, bunch deductions (charitable gifts, real estate taxes) in the year received, and consider if it's best to take smaller distributions or choose Net Unrealized Appreciation (NUA) for company stock, always seeking professional tax advice first.
The "Lump Sum 6% Rule" is a guideline for choosing between a single lump-sum pension payment or guaranteed monthly income, suggesting you take the monthly pension if the annual payout is 6% or more of the lump sum, and the lump sum if it's less than 6%, as it likely offers better investment potential by allowing you to earn more than that rate. To use it, divide the total annual pension (monthly payment x 12) by the lump sum; a higher percentage favors the annuity, while a lower percentage favors the lump sum.
Depending on your fund's rules, you may be able to withdraw some or all of your superannuation (super) as a lump sum. If so, you can take all your super in one go, or as multiple lump sum payments over time. Ways of using a lump sum include: clearing debt (for example, paying off your mortgage)
Accessing super to repay borrowed amounts for eligible expenses. If you or your dependant paid for an eligible expense by borrowing money and you don't have the financial capacity to repay the amount, you may be able to access some of your super to repay the outstanding balance of the borrowed amount.
Retiring at 60 with $500,000 in super is possible but challenging, depending heavily on your spending, lifestyle, and if you qualify for the Australian Age Pension. You might cover modest expenses using strategies like drawing down around $20,000 annually (using the 4% rule as a guide) plus other income, but it requires careful budgeting, potentially part-time work, and reducing living costs. A financial advisor can help tailor a plan, as $500k alone usually supports a basic to moderate retirement, not a lavish one.
Assets Test
A single homeowner can have up to $714,500 of assessable assets and receive a part pension – for a single non-homeowner the higher threshold is $972,500. For a couple, the higher threshold to $1,074,000 for a homeowner and $1,332,000 for a non-homeowner.
No - if you have 10 years or more of service. Once you complete 10 years of pensionable service, you cannot withdraw the pension amount. Instead, you receive a Pension Certificate and can claim a monthly EPS pension after age 58 using Form 10D.
Increasingly, employers are making available to their employees a one-time payment for all or a portion of their pension. This is known as a lump-sum payout option. If you choose a lump-sum payout instead of monthly payments, the responsibility for managing the money shifts from your employer to you.