At 65, superannuation enters a new phase. You have unconditional access to your balance, earnings in pension phase are tax-free, and the Age Pension becomes accessible at 67. Managing your super effectively in the years around 65 can significantly affect how long it lasts and how much Age Pension you receive.
Average Super Balance at 65
APRA data for Australians aged 65–69 at retirement:
| Median balance at retirement | |
|---|---|
| Men 65–69 | ~$180,000–$220,000 |
| Women 65–69 | ~$120,000–$150,000 |
These figures reflect that many Australians retire with less than the ASFA Comfortable Retirement Standard suggests ($595,000 single / $690,000 couple). Most retirees supplement their super with the Age Pension.
What to Do With Your Super at 65
Convert to an account-based pension
This is the most common approach. Moving your super from accumulation phase (15% tax on earnings) to pension phase (0% tax on earnings) is one of the most tax-effective moves available in the Australian system.
The only constraint: the Transfer Balance Cap (TBC) limits how much can be moved into pension phase — $1.9M for FY2025–26. Amounts above the TBC can remain in accumulation (taxed at 15%) or be withdrawn as a lump sum.
Set a drawdown strategy
Account-based pensions have a mandatory minimum drawdown — you must withdraw at least the following percentage of your balance each year:
| Age | Minimum annual drawdown |
|---|---|
| 65–74 | 5% |
| 75–79 | 6% |
| 80–84 | 7% |
| 85–89 | 9% |
| 90–94 | 11% |
| 95+ | 14% |
There is no maximum — you can draw more than the minimum.
Timing: don’t rush if still working
If you are still working at 65, your super can stay in accumulation until you reduce or cease work. Delaying the move to pension phase by a year or two allows accumulation contributions to continue, and retains flexibility.
Age Pension at 65 and 67
Age 65: Not yet eligible for the Age Pension (eligibility age is 67 for Australians born after 1 January 1957).
Age 67: Age Pension eligibility begins (subject to income and assets tests). Your super balance in pension phase is counted in both:
- Assets test: Full balance counted at market value
- Income test: Deemed income at ATO deeming rates applied to your balance
Strategic management of super drawdown speed and other asset structure can influence Age Pension entitlement — this is where financial advice at 65 often delivers significant value.
Tax on Super at 65
From age 60 onwards, all withdrawals from a taxed super fund are completely tax-free — lump sums and income stream payments alike. This applies from 60, so at 65 the position is unchanged.
The investment earnings inside your pension-phase account are also tax-free (0%). This is one of the most valuable tax concessions in the Australian system.
Making Super Last at 65
A common concern at 65 is outliving your super. With Australian life expectancy at approximately 84 (men) and 87 (women), a 65-year-old can expect 20–25 years in retirement.
Key strategies for longevity:
- Maintain a meaningful growth allocation — many financial planners suggest that even at 65, a 30–50% growth allocation is reasonable given a 20-year drawdown horizon
- Draw only the minimum pension in early retirement years to preserve capital
- Consider that Age Pension acts as a floor — as super depletes, Age Pension entitlement may increase
See How to Make Your Super Last and Super Drawdown Strategies.
Contributions After 65
You can still contribute to super at 65:
- Employer SG: If you are employed, your employer must continue paying SG
- Voluntary contributions (65–74): Require meeting the work test (40 hours of gainful employment in 30 consecutive days)
- Downsizer contributions: If you sell your home and are 55+, up to $300,000 per person can be contributed outside the normal caps — no work test required. See Downsizer Contribution.
- Age 75+: No voluntary contributions (except downsizer)
Frequently Asked Questions
Do I have to draw super at 65? No — you are not required to withdraw or start a pension at 65. Super can stay in accumulation indefinitely, though pension phase offers the tax advantage of 0% earnings tax.
Can I still work while drawing super at 65? Yes — at 65, you can draw any amount from super and continue working. There is no restriction.
What happens to my super when I die? Your super passes to your nominated beneficiaries — either via a binding death benefit nomination (BDBN) or the fund trustee’s discretion. Super does not automatically form part of your estate unless you nominate your legal personal representative. See Death Benefits in Super.
For more: Super by Age, Account-Based Pension Explained, Super and the Age Pension, Minimum Drawdown Rates. For advice on managing super in retirement, speak with a licensed financial adviser via MoneySmart.