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

Provides a fixed return over a nominated term. Ideal for your DIY super fund’s medium- to long-term cash holdings.

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 on this web page contains general advice only. It does not take into account any of your objectives, your financial situation, or your needs. You should consider whether the information is appropriate for you, having regard to your objectives, financial situation and needs before you act on the information. Also, before you make any decision about whether to acquire a financial product you should read the relevant product disclosure statement. You should also consider talking to a financial planner to assist you in this process.

The information on this web page has been prepared by Commonwealth Financial Planning Limited ABN 65 003 900 169 AFSL 231139 (Commonwealth Financial Planning), a wholly-owned non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124. Financial Planners are representatives of Commonwealth Financial Planning.

The information on this web page is based on current regulatory requirements and laws, which may be subject to change. While care has been taken in the preparation of this web page, no liability is accepted by Commonwealth Financial Planning, its related entities, agents and employees for any loss arising from reliance on this web page.