Toggle left hand content menu
  • Transition to retirement

    Previously, you could only access your super once you turned 65 or retired. This meant it was difficult to reduce your work hours and still maintain your standard of living.

    Under the transition to retirement rules, if you have reached your preservation age, you may now be able to reduce your working hours without reducing your income. You can do this by topping up your part-time income with a regular 'income stream' from your super savings.

    Under these rules you can only access your super benefits as a 'non-commutable' income stream. A non-commutable income stream is one that cannot be converted into a lump sum. This generally means you cannot take your benefits as a lump sum cash payment while you are still working. You must take your super benefits as regular payments.

    Employers still need to make compulsory super guarantee contributions for all their eligible employees, including people on transition to retirement.

    Attention icon

    When considering the tax aspects of retirement, transition to retirement or superannuation income streams, we recommend you seek financial advice to find out what is best for you.

    Direction icon

    Find out more

    Transition to retirement

    • Last modified: 14 Feb 2014QC 31882