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Super lump sum

Taking your super as a cash payment

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You may be able to take your superannuation as a lump sum payment when you retire. This is usually tax-free from age 60.

How a superannuation lump sum works

Depending on your fund's rules, you may be able to withdraw some or all of your superannuation (super) as a lump sum. If so, you can take all your super in one go, or as several lump sum payments.

Ways of using a lump sum include:

Getting your super

You can get your super when you retire and reach your 'preservation age'. This is between 55 and 60, depending on when you were born. Or when you reach age 65, even if you are still working.

Getting the Age Pension

What you do with your lump sum after you withdraw it may affect your eligibility for the Age Pension.

To find out how a lump sum could affect your entitlements, talk to a Services Australia Financial Information Service (FIS) officer.

Financial and tax advice

Get financial advice from your super fund or a licensed financial adviser before withdrawing your super.

The Australian Taxation Office (ATO) website has information about how your super payout is taxed.

Pros and cons of taking a lump sum

Consider the pros and cons to decide if taking a super lump sum is right for you.


If you take a lump sum, you can:


However, you may:

Investing a lump sum

If you decide to invest a lump sum, you need to consider your financial goals, investing time frame and risk tolerance.

See how to invest to explore your options.

Using a mix of retirement income options

You don't have to take an all or nothing approach with your retirement income.

Taking some of your super as a lump sum could give you access to money for planned activities. For example, paying for a holiday or medical expenses.

You could keep the rest in a retirement income stream, to give you a regular payment you can rely on. Income stream options include an account-based pension or annuity.

Woman smiling and using a tablet.

Alisha uses a mix of options

Alisha is 67 and is retiring with $330,000 in super. She decides to take out a $40,000 lump sum to pay for home improvements.

She transfers the rest of her super to an account-based pension. By investing $290,000 in an income stream, Alisha will receive regular income payments on top of the Age Pension.

She still has the flexibility to withdraw another lump sum in the future if she needs to.