For those born after 1 July 1960 an important change will take effect on 1 July 2015 that will alter your ability to access your super.

This rule, which was introduced some 23 years ago, changes your ability to access your super after retiring permanently.

Everyone who belongs to an Australian superannuation fund has a “preservation age” according to the following table:

The key is what happens on 1 July this year. For those born after June 1960, 56 will be their “preservation age” but for others, you need to take note of the following.

If you’re:

1) Aged at least your preservation age but under 65 and ceased work before age 60

If you ceased work before you had your sixtieth birthday then you have to pass two tests before you can access your super money as a lump sum.

Firstly you must be aged at least your “preservation age” – 55 for those born before July 1960 and 56 for those born during the 1960/61 financial year.

Secondly you must be able to satisfy your super fund trustee that you’ve ceased work and never intend to work again for more than 10 hours per week.

APRA regulated super funds will typically ask you to sign a declaration. For SMSFs, your auditor will probably want to see a signed letter to your trustees requesting the benefit be paid and that retirement is evidenced by a signed document – maybe a statutory declaration – stating that you’ve retired and won’t be seeking paid employment in the future. A letter from your employer might be helpful.

By making this declaration, can you never return to work? The key issue is your frame of mind when you make the statement. This doesn’t mean your life won’t change at some future point in time.

In relation to making these declarations about ceasing work and your future intentions, it’s important not to be silly. Super monies accessed illegally are taxed at the highest marginal tax rate and SMSF trustees can be fined for super law breaches.

Once you hit your preservation age then you can elect to take your super money as a transition to retirement (TTR) pension. A key feature of these pensions is that lump sums aren’t allowed until an access rule discussed here is satisfied.

2) Aged at least 60 but under 65 and ceased work aged at least 60

If you ceased work on, or after, you turned 60 years of age then full access to your super is immediately allowed. Note you don’t have to fully stop work. You just need to stop one job.

A super fund will need proof that you have ceased employment via signed declaration, employment letters and so on.

3) Aged at least 65

Full access is permitted even if you’re working full-time. There are no restrictions – you can take some or all of it as a lump sum or pension or multiple pensions.

Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances.