07 April 2026
The short answer is there’s no limit. When you turn 65, you gain what’s called an unconditional condition of release, meaning you can access your entire super balance however you choose, whether you’re still working or fully retired. The bigger question isn’t how much you can take out. It’s how to structure your access in a way that works best for your retirement.
Once you turn 65, two main paths are available to you. The first is a lump sum withdrawal. You can take out some or all of your super balance in one go. Many people use this to pay off their mortgage, fund home renovations, or help family members. The trade-off is that once money leaves the super system, investment earnings on it are taxed at your personal marginal rate rather than the tax-free environment inside super.
The second is an account-based pension. This moves your super from an accumulation account into a retirement phase account, paying you a regular income on a schedule you choose. The rest of your balance stays invested, and investment earnings in a retirement phase account are completely tax-free. Many people combine both; a lump sum for a specific purpose and an account-based pension for ongoing income. There’s also no obligation to act at all. You can leave your super in accumulation and access it when you’re ready.
For most Australians, super withdrawals after age 60 are completely tax-free, whether taken as a lump sum or as pension payments. You generally don’t need to declare them on your tax return. The main exception applies to untaxed super funds, which you’ll mostly find in certain public sector and defined benefit schemes. If you think this might apply to you, it’s worth checking the specific rules for your fund.
If you start an account-based pension, two rules apply. The first is the transfer balance cap, which from 1 July 2025 sits at $2.0 million. This is the lifetime limit on how much you can move into a tax-free retirement phase account. Any super above this cap must stay in accumulation, where earnings are taxed at up to 15%.
The second rule is the minimum annual drawdown. Once a pension is started, the government requires a minimum withdrawal each year, calculated as a percentage of your balance. At age 65 to 74, that minimum is 5%, rising as you get older. There’s no maximum, you can draw more than the minimum at any time.
How you access your super can influence your Age Pension eligibility through Centrelink’s assets and income tests. A lump sum moved into a bank account becomes an assessable financial asset. An account-based pension balance is also assessed under both tests. The key insight is that Centrelink looks at where money ends up, not how it was withdrawn. Decisions made in one area of your finances create ripples in others, which is why retirement planning works best when you look at everything together.
Knowing you can access your super without restrictions is a great starting point. Structuring that access to minimise tax, protect your Age Pension entitlements, and fund the retirement you actually want is where the work happens.
If you’re approaching 65 and want to talk through your options, get in touch with Vinh.
Disclaimer: Information presented is general in nature and hasn’t taken into account your personal circumstances. You should consider whether the strategies and investments are suitable for you by seeking personal advice from a licensed financial advisor. We do not accept any liability for any resulting loss or damage of the reader or any other person. Past performance is not a reliable guide to future returns.
