This 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.
Planning ahead with Transition to Retirement (TTR)
Even if you don’t meet the retirement condition or aren’t ready to stop working, once you turn 60 you can start a TTR income stream. This lets you draw a limited income from your super while still employed, which can help reduce your hours or boost your super through salary sacrifice.
This option can be a powerful way to ease into retirement on your terms.
Questions to ask yourself as you turn 60
Turning 60 is a good moment to pause and review your super strategy. Consider whether your super accounts are consolidated to avoid paying unnecessary fees. Check if your investment mix still suits your goals and risk tolerance, and make sure your beneficiary nominations are current.
You might also want to think about whether starting a TTR income stream could help support your lifestyle or ease the shift towards retirement.
Beyond these practical steps, many people begin to ask bigger life questions, such as:
- Could I afford to retire sooner than expected?
- What would working part-time or switching careers look like?
- Should I use my super or other savings to pay off the mortgage?
- Am I on track to support the lifestyle I want throughout retirement?
With the flexibility to make tax-free withdrawals from age 60, your super can become a powerful tool for reducing work hours, paying off debt, supporting family, or ticking off travel and home improvement goals. It’s a time to think about how financial independence fits into your future.
If these questions are on your mind, you’re certainly not alone – and you’re in the right place.
Thinking beyond withdrawals: Boosting your super before retirement
While many focus on the new flexibility to withdraw super from age 60, it’s also a useful time to consider how you might boost your super savings before you fully retire. Consider salary sacrificing, catch-up provisions, or consolidating accounts now to boost your super and maximise retirement savings potential. Smart planning now can make a big difference to your financial security down the track.
Many turning 60 start asking practical questions about using their super effectively – here is what some Retirement Essentials members have asked:
Phil (age 60), asked:
“Can I sell my investment property and contribute to my super to minimise my Capital Gains Tax (CGT)?”
This is a great example of the kind of tax planning question that often comes up in your early 60s. Selling an investment property can trigger CGT, but making concessional contributions to superannuation might help reduce your taxable income for the year. The right approach depends on your overall financial situation, contribution caps, and retirement goals.
Another member, Helen (age 60), asked:
“Am I better off putting my inheritance into my super fund, or my bank at 5.5% interest?”
Her question gets right to the heart of retirement planning. Whether super is the right place depends upon timing, access needs, investment return expectations, and Age Pension implications. It’s exactly the kind of conversation worth having as you approach this milestone.
Is 60 your moment?
You don’t need to make big moves today. But turning 60 is a powerful time to reflect, ask questions, and start planning with more clarity and confidence. Super is now more flexible than ever – and that flexibility puts you in control.
Lynne’s retirement outlook
At 60, Lynne is a homeowner with $620,000 in super, $2,000 in cash and just $31,000 left on her mortgage, which she’s repaying at $2,000 a month. She plans to retire at 65 and hopes to enjoy a comfortable lifestyle with annual holidays.
During a Retirement Advice Consultation Lynne admitted to having an “oh my God” moment as she realised her working life – 39 years and counting – was nearing its end. She wasn’t sure how to make the leap into retirement and had four big questions:
- What would her income and spending look like in retirement?
- Should she pay off her mortgage now or add more to super?
- How would super work once she stopped working, including the tax implications?
- Would she be eligible for the Age Pension?
Lynne’s questions were explored using the Retirement Essentials forecasting tool, modelling a retirement plan that would give Lynne the lifestyle she wanted and confidence in her future:
- Spending and lifestyle: $52,000 per year in retirement, plus $5,000 for annual holidays from 2030 to 2040.
- Debt strategy: Continue current mortgage repayments, clearing the debt before she retires
- Super growth: Direct all future pay rises into salary-sacrificed super contributions to boost her balance before age 65
- Tax efficiency: Benefit from concessional contributions caps and the tax advantages of super while still working, and using an Account-Based Pension in retirement
The results were encouraging. Under average market conditions, Lynne has a good likelihood her savings can support her desired lifestyle all the way to age 95, with:
- A projected $150,000 plus in super and investments remaining at age 95 (95% to 50% likelihood range)
- Even in a higher-spending scenario ($60,000 plus holidays to at 75, then reducing down to $52,000 from age 85), projections still showed around $50,000 remaining at age 95.
Lynne was also able to see her likely Age Pension eligibility, which looks likely to begin around age 70 with a part-Age Pension, helping to supplement her retirement income.
Lynne left the consultation with clarity on her options, confidence in her financial security, and a practical plan that gives her the freedom to enjoy her final working years – knowing her retirement years look just as promising.
A Retirement Advice Consultation can help you explore whether you’ve met a condition of release, how different withdrawal options affect your finances, and whether now’s the time to make a move.
Have you started thinking differently about your work, lifestyle, or finances since turning 60?
Do you have any questions or ideas as you enter this new chapter?
Are there any financial decisions you are weighing up, such as retiring early, paying off the mortgage or helping the family?
Why not share your situation and see how others are approaching the same crossroads?
