Accessing your super can begin once you reach your ‘preservation age’. One of the ways to access superannuation is through a pre-retirement pension. This is a regular income stream drawn from your super savings while you’re still working. Pre-retirement pensions give you more flexibility as you begin your transition to retirement.

If you’d like more information about your options, book an appointment online for a complimentary, no-obligation consultation with a financial planner and start planning your retirement today.

Pre-retirement pensions provide a number of benefits to people who have reached the preservation age. These include:

  • You can access an extra source of income, which may enable you to reduce your working hours
  • In most cases, you’ll pay less tax on your pension income than you would on equivalent salary or wages
  • You can keep contributing to super through salary sacrifice while drawing a pre-retirement pension up to a determined age

What you need to know

Pre-retirement pensions aren’t for everyone and not all superannuation funds allow them. You should first discuss your tax position, financial objectives and retirement needs with a financial planner.

You should particularly consider:

  • Whether you have enough superannuation savings to support drawing a pension
  • If your super fund offers a pre-retirement pension
  • If your employer will allow you to work part time at a rate that suits you, continue to pay your super guarantee contributions and allow you to salary sacrifice
  • The costs of this strategy

While pre-retirement pensions let you access your super as an income stream before retiring, there are restrictions on withdrawing super as a lump sum while still working.

Related products

DIY Super Term Deposit

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Guaranteed annuities

A guaranteed annuity is a secure investment that pays you a guaranteed income throughout your retirement.

Managed funds

Gain access to a number of sophisticated investments, some of which aren’t normally available to individual investors.

Planning for retirement

Taking an active role in planning your retirement will not only make you feel more confident about your financial future, it will help boost your retirement savings, so you can live the retirement lifestyle you want. 

From super, savings, to smart investments, we’ve got all the advice you need to plan a comfortable retirement. It's never too early to get started.

Learn more about planning for retirement

Things you should know

The information contained on this web page is of a factual nature only and is not intended to constitute financial product advice. It has been prepared by Commonwealth Financial Planning Limited without considering your individual objectives, financial situation or needs. You should consider its appropriateness in light of your circumstances and consider seeking professional advice relevant to your individual needs before making a decision based on this information. Commonwealth Financial Planners are Representatives or Authorised Representatives of Commonwealth Financial Planning Limited ABN 65 003 900 169, AFSL 231139, a wholly owned but non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124.