Find out what to consider with your super when planning your retirement.
Check your super
When you start to plan for retirement, you’ll need to check your super:
where it is
how much you have
whether you have lost or unclaimed super
consider consolidating accounts where relevant
that your details are up-to-date with the ATO and your super funds.
You can do this in 5 simple steps with our super health check. For most people it only takes a few minutes.
It’s important to know your total super balance and contributions caps, especially if you plan to contribute to your super. When you check your total super balance, take a note of your concessional and non-concessional contributions. These will indicate if you can make extra contributions or are approaching your limit.
Estimate how much income you will need to retire
The Australian Securities and Investment Commission’s (ASIC) Moneysmart website has information and tools to help you prepare to retireOpens in a new window. You can use their:
Super and pension age calculatorOpens in a new window to work out when you can access your super and the age pension
Budget plannerOpens in a new window to work out your living costs
Retirement plannerOpens in a new window to estimate your income from super and the age pension.
Your superfund may also offer a range of calculators to help you. You can access information to help you understand your finances at a free Financial Information Service (FIS) webinarOpens in a new window run by Services Australia. You can book to attend a live webinar or watch recordings on their website.
How can I increase my super?
You can increase your super by making extra contributions. Before deciding whether to contribute extra, remember to consider your total super balance and contribution caps. Exceeding the caps may lead to extra tax.
If you decide to contribute extra to your super, the Moneysmart super contributions optimiserOpens in a new window will help you work out which type of contribution will give your super the biggest boost.
The following contribution types may be available as options to increase your super (separate eligibility conditions apply):
concessional and non-concessional contributions
carry forward unused contribution cap amounts
downsizer super contribution for people over 55 who have sold their primary residence
government co-contributions to match your extra personal contributions (up to $500)
a low income super tax offset (LISTO) payment (up to $500)
spouse contributions
capital gains tax retirement exemption contribution for people under 55 if you are selling a small business.
If you are employed, it’s important to remember that your employer’s contributions will count towards your concessional contributions cap.
You may have more than one super account. Consider consolidating your super which means combining super into one account to help save on fees.
Visit ASIC’s Moneysmart to learn more about how to grow your superOpens in a new window.
You can also talk to your super fund about the investment options available to help you grow your super.
Considering an SMSF to grow your super?
If you’re thinking about a self-managed super fund (SMSF) to grow your super, visit Moneysmart to learn more about what is required and to understand if an SMSFOpens in a new window is right for you.
Accessing your super to retire
When you reach your preservation age and retire, you can access your super to fund your retirement.
You can also access your super:
when you turn 65 years old
if you are aged 60 to 64 years of age, under the transition to retirement rules, while you continue to work.
For more information, see Accessing your super to retire.
You can access your super as a lump sum, income stream or a combination of both. Visit Moneysmart to learn more about your retirement incomeOpens in a new window.
After you retire, you may decide to return to work, and you may be able to contribute to your super again. However, it’s essential to consider how this might affect your income, including Australian Government payments (such as the age pension) and your superannuation.
You can discuss your options:
by using the Financial Information Service – Services AustraliaOpens in a new window
with your super fund
by contacting an independent financial advisor to understand any potential impacts.
Each fund has governing rules. I’s essential that you talk to your super fund about how you can access your super in retirement and what options are available to you. If you’re a member of an SMSF, understand how you can be paid your benefits.
Tax on super benefits
The tax on super benefits depends on factors like your age, payment amount, and whether your super is taxed or untaxed. If you are 60 years old or older, your super payments may be tax free. For personalised advice, consult your super fund or a registered tax practitioner.
If you’re considering an income stream, check your transfer balance cap (TBC). Exceeding your TBC may lead to extra tax. TBC also applies to a death benefit income stream.
For more information, see Tax on super benefits.
After you retire, even if you don’t need to lodge a tax return it’s important that:
your contact details with the ATO and your super funds are kept up-to-date
you regularly review your super on ATO Online
you check to see if you have any lost or unclaimed super.
Consider seeking professional advice
This information is not financial advice. You should consider if you need professional advice from:
a registered financial adviserOpens in a new window
your super fund
a registered tax practitionerOpens in a new window.
Their guidance can help you make informed decisions about your super, tax and retirement options.
Learn more about your options at Financial adviceOpens in a new window on the Moneysmart website.
QC103048 – Last updated 20 September 2024
https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/growing-and-keeping-track-of-your-super/super-and-planning-for-retirement