Super vs pension: understanding your retirement options
Updated on 1 July 2025 | 4 minute read
Thinking about life after work? You're probably weighing up pension vs super options for funding your retirement. Let’s break it down.
Winding down from work
People are living longer than ever, which means their savings for retirement need to last longer, too. That's why it's crucial to make your super work harder for you.
By carefully managing your super, you might be able to stretch your retirement income further – and enjoy a higher standard of living for longer.
But before getting into that, let's start with understanding the differences in your super phases.
Super accumulation vs pension phase (retirement)
There are two phases in your super journey. They both have different goals depending on where you're at in your working life.
While you're working, your super is in the accumulation phase. This means it's trying to grow as much as possible over a longer period. While your super is in this phase, it's not assessed as part of the income and assets test until you and your partner reach your Age Pension qualifying age.
Once you retire, you generally move into a retirement (or pension) phase. The aim is to give you a steady income to spend in retirement.
Retire with ART
With our 3 pension options, you can get regular tax-free payments into your bank account from age 60.
Transition to Retirement Income account
For when you're nearing retirement. Get payments from your super while you're still working up to age 64.
Retirement Income account
Eligible for your super? Get a regular income with flexible payment options. You can also choose your investment options.
Lifetime Pension
Once you're eligible to access your super, this pension gives you income for life, which never runs out. There are also possible Age Pension benefits.
What's the difference between the Age Pension and super for retirement?
Super
Your super fund invests your contributions to help grow your money over time. If the market's doing well, it means your money could increase by the time you retire. When the market's down, your balance may decrease.
Age Pension
The Age Pension is income support from the government. It's meant to be a safety net to help older Australians who need it most. You need to meet age and eligibility requirements to get it.
| Super | Age Pension | |
|---|---|---|
| Access age | Access age is generally 60 (unless you're eligible for early access) | Eligibility age currently 67 |
| What is it? | Your money that's invested to grow over time | Government-funded payment |
| How you get it | Different types of access (e.g. account-based pension, lump sum payment) | Regular fortnightly payments |
| Amount | The amount you have in super depends on any contributions to your account, as well as investment returns | The amount you get depends on income and assets test (super is counted as part of this once you turn 67) |
| Tax | Any withdrawals after age 60 are tax-free | Taxed as income |
| After you die | Could be passed on to beneficiaries when you die | Stops when you die |
Accessing super while getting the Age Pension
There are plenty of ways to combine retirement products with the Age Pension. Check how your super balance is counted when you apply for the Age Pension.
Next steps
Now you have an idea of the differences between super vs pension, and Age Pension vs super, the key is staying engaged. Consider:
Check in on your super
Log in to Member Online to track your super and manage your investment options.
Get advice on your super
You can get advice about your ART account – including Retirement Income accounts – over the phone. It's included as part of your membership.1
We're here for you through every stage
Planning for retirement should be exciting. We've got everything you need to make it stress-free.
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