Superannuation Rules for Over 60

The superannuation rules for those over the age of 60 are the most favourable.

In this article, we will discuss superannuation contributions and withdrawals, as well as all the associated tax benefits.

In many cases, you should be able to access your superannuation tax free when over age 60. Click here to read more.

Superannuation Rules for Over 60’s – Contributions

Age 60- 64

The contribution rules for people between age 60 – 64 are the most flexible.

Non Concessional Contributions (After Tax Contributions) of up to $180,000 can be made within the financial year (2014-15). Further, you also have the ability to utilise the ‘bring forward rule’, allowing you to bring forward up to two years’ worth of the Non Concessional Contribution cap.

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You can use the bring forward rule if you are 64 on 1 July of the year you turn 65.

Year NCC Cap Bring Forward Rule Permitted? Max NCC utilising Bring Forward Rule
2014-15 $180 000 Yes $540 000

Transitional provisions are in place in relation to the Bring Forward Rule from 1 July 2017 due to the reduction in the Non Concessional Contribution cap.

Concessional Contributions (SGC, Salary Sacrifice, Personal Deductible, Self Employed) of up to $35,000 can be made within the financial year (2014-15).

Age 65 – 75

Contribution rules for those over age 65 are a little more restrictive than being under age 65.

Again, Non Concessional Contributions of $180,000 can be made; however there is no ability to utilise the ‘bring forward rule’. Furthermore, you are required to meet the superannuation work test over the age of 65. This requires you to work at least 40 hours over a 30 consecutive day period within the financial year and prior to the contribution being made. Click here for more info on the work test.

Concessional Contributions can also be made up to $35,000 p.a., also requiring the work test to be met.

Only mandated employer contributions can be made for those over age 75.

Superannuation Rules for Over 60’s – Withdrawals

Tax on Withdrawals

Put simply, all lump sum and income paid from an account based pension for those over age 60 is received tax free, except for the Taxable (untaxed) component. Click here to read more about taxation of the Taxable component.

Accessing Super

Let’s start with the easy one. There is no restriction on accessing super for people over 65.

If you are between 60-65, you can generally have unlimited access to your super if you have ceased an employment arrangement over age 60 (even if you continue to work).

If you have reached your preservation age and have retired with no intention of returning to work, you also have unlimited access to your accumulated super.

In the final scenario, you are able to access your super if you are between 60-64 and are still working. However, in this instance, your access is limited to a transition to retirement (TTR) strategy. Click here for an example on how a TTR strategy works and the rules relating to a TTR strategy.

Click here to read how you may be able to access your super while under age 60 and still working.

Click here to read: ‘Superannuation Retirement Rules and Definitions


Chris Strano

Hi, I hope you enjoyed reading this article. If you want my team and I to help with your retirement planning, click here. If you prefer a DIY approach, then check out the SuperGuy HUB. Thanks for stopping by - Chris.

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  1. Glenn Rattle

    Hi Chris, I am 59 and have been in retirement for three years. If l take a lump sum of $40,000 of my available SMSF l would also have to pay 15% tax?
    Also if l was over 60 and did start work again can l still take a lump sum of $40,000 and if so how much tax would be paid

    • Chris Strano

      Hi Glenn,
      In order to access your super, you need to be over your preservation age, retired, and have no intention of returning to work. This is a ‘retirement‘ condition of release.
      Upon meeting this condition you are able to take a lump sum from your super, but not necessarily pay tax under age 60 due to the low rate cap. Read here for more.
      Once over age 60, the lump sum should be tax free (unless part of your balance includes a taxable-untaxed component).
      If you do not meet the retirement condition of release above, you may be able to have limited access to your super even if you are still working. Read here for more.

  2. robert strickland

    hi. im 62 and nearing retirement or semi retirement. im in a local govt fund. am I better leaving my funds in that fund or is it best to reinvest in another wealth fund or like? does my fund continue to invest once ive retired?

    • Chris Strano

      I am unable to provide you with personal advice, particularly retirement product advice. You will need to consult a financial planner.

  3. Robert

    I’m 61 , still working and want to purchase a granny flat to be placed on my daughters property. Can I use my supper to make this happen.

    • Chris Strano

      Hi Robert, in order to access your super as a lump sum, you need to have met a full condition of release, such as ‘being retired with no intention of returning to work’, or ‘having had an employment arrangement come to an end after reaching age 60’. Alternatively, you can have limited access to your super through a TTR strategy.
      A granny flat is unable to be purchased while your money is within super, but a soon as you withdraw it out of super, you can do with it what you like. In saying this, it would be wise to obtain financial advice to ensure what you are doing is appropriate for your needs and compliant. Feel free to make a complimentary appointment with our firm, Toro Wealth, if you would like to see the benefits of obtaining professional advice.
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      What is a TTR Pension?


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