In this guide
- Ceasing employment or retiring: What’s the difference?
- Can you just change to part-time employment?
- How do you apply for your super when you cease employment?
- Are there limitations on how you access your super when you cease employment after 60?
- What are the tax implications?
- Can you change your mind and go back to work later?
- Other conditions of release
- The bottom line
Accessing your super becomes more attractive once you turn 60. Not only are withdrawals tax free for most people, but the definition of stopping work is more flexible.
Ceasing employment after you reach the age of 60 is a condition of release, or one way you can legally access your super in Australia. But where super is concerned, there is a material difference between ceasing employment and retiring.
Ceasing employment or retiring: What’s the difference?
Ceasing employment in super parlance means leaving a job, even if you get a job with another employer. And if you do get another job, you can only access the super benefits you’ve accumulated up to that point in time. Any super you accumulate with your new employer must be preserved until you meet another super condition of release (such as turning 65).
Note, though, that if you have two jobs you only need to cease one employment arrangement to meet this super condition of release. You can continue working in your other job. Retiring, on the other hand, is more final. To satisfy the retirement provisions of Australia’s super legislation you must:
- Have reached your preservation age
- Have ceased gainful employment
- Not have any intention of becoming gainfully employed again in the future.
Being gainfully employed is defined as receiving any sort of monetary reward for working at least ten hours a week.
Learn more about reaching preservation age and retiring as a condition of release.
Note, though, that if you have two jobs you only need to cease one employment arrangement to meet this super condition of release. You can continue working in your other job.
