Amanda Hardy Lai, Author at Retirement Essentials

Retiring before Age Pension Age: What you need to know

by Amanda Hardy Lai | Centrelink Age Pension

Retiring before you qualify for the Age Pension can feel like stepping into no-man’s land. You’ve wrapped up your working life, but you’re not yet eligible for government support. It’s a unique stage – and one that’s becoming increasingly common since the Age Pension age increased to 67. This article helps you understand what to focus on, what support is (and isn’t) available, and how to make the most of your resources while you wait.

You’re not working – but you’re not 67 (yet)

Many people leave work well before Age Pension age: by choice, due to redundancy, or for health or caring reasons. Some assume they can apply for the Age Pension as soon as they stop working – but the earliest you can apply is 13 weeks before turning age 67 (if born after 1 Jan 1957). Even then you won’t be eligible until you turn 67, but you’ll be ahead in the Centrelink queue to get your application processed. That leaves a critical ‘bridge’ period, often several years long, where your superannuation and other income sources will need to carry you through.

Super can (usually) be accessed – but needs to stretch

Once you’ve met a condition of release (e.g. retiring after 60), you can usually start withdrawing money from your super. That might be through a lump sum or an Account-Based Pension (ABP).The challenge is how to draw enough to meet your spending needs now, while preserving enough to support you later – especially once the Age Pension kicks in.

Turning 60: Is it time to rethink your super?

by Amanda Hardy Lai | Superannuation

his birthday changes more than just your age. It could change your future.

There’s something quietly powerful about turning 60. It might not mean retiring just yet, but it often marks a shift in how you think about your money, your lifestyle, and your retirement plans.

Superannuation is more than just a number on a statement. At 60, it becomes a flexible financial tool you can start to shape around your goals – whether that’s reducing work hours, paying off debts, supporting family, or planning for a comfortable retirement.

Why does turning 60 matter for your super?

??From age 60, you can usually start accessing your super tax-free – but only if you meet a condition of release. These rules are about more than just age; they define when and how your money becomes available based upon your work and retirement status.

For example, if you stop one job after turning 60 but continue working in another, you may be able to access the super benefits you had accrued up to the date you left that job. However, any super accumulated from your ongoing employment remains preserved or restricted until you meet another condition of release.

At 60, there are two key ways to meet this condition:

You stop working because you ceased an employment arrangement on or after your 60th birthday. In this case, only the super balance you had at that time becomes fully accessible.

You retire with the intention of working no more than 10 hours per week. In this case , your entire super balance can be accessed.

It’s important to remember that each super fund may have its own definitions of what counts as “returning to work,” including hours and job type. And if you go back to work later, your original retirement intention still matters but you may need to meet conditions again for new withdrawals.

From age 65 onwards, you can access your super freely regardless of your employment status.

Taking accrued leave as a lump sum

by Amanda Hardy Lai | Planning for Retirement

As retirement approaches, deciding what to do with your accrued leave is an important step. Whether you choose to take your leave as paid time off or cash it out as a lump sum, understanding the financial and practical implications will help you make the best decision for your circumstances. The following explainer outlines the key points to consider, from tax and superannuation impacts to how lump sums may affect government income support.

Understanding accrued leave and cashing out

Accrued leave includes the paid time off you’ve built up during your employment – annual leave and long service leave are the most common forms. When you cash out your accrued leave, you receive a lump sum payment instead of taking time off work. This option usually requires your employer’s agreement and depends upon workplace policies.

While a lump sum can provide immediate cash, it’s important to be aware of the potential financial effects. These payments may be taxed differently from your usual salary, possibly pushing you into a higher tax bracket for that year. Also, cashing out reduces your leave balance, which might limit your opportunity to rest or slow down gradually as you approach retirement.