How to access your super in your 60s while claiming JobSeeker

Navigating the job market as a mature jobseeker can bring both excitement and dismay.

On the one hand, your experience gives you a shot at opportunities few others are qualified for; however, expectations don't always align with reality.

Add to that the pressure many feel with the expense of Christmas quickly approaching, and the hunt for income can feel like it has fresh urgency at this time of year.

A little-known fact for mature jobseekers toughing it out on what can seem to be a never-ending job search is that your superannuation could provide some much-needed relief. If you're in your 60s and eligible for JobSeeker, it's possible to access your super to take some of the financial pressure off- but only if you meet specific conditions.

If you're fed up with the jobs merry-go-round at the same time as feeling the pinch, accessing your super to serve as supplementary income might be a strategy to consider.

Combine it with good financial advice, and you're more likely to ensure you make a decision that makes sense for your financial situation and peace-of-mind. Here's some key things to keep in mind.

Understanding JobSeeker payments

How do I know if I'm eligible for JobSeeker payments?

JobSeeker is a fortnightly income support payment provided by the Australian Government for unemployed individuals who meet specific criteria:

Age: You must be at least 22 years old but under the pension age of 67.

Income and Assets Test: Your total assessed assets and income (including your partner's, if applicable) must be below the threshold.

Residence rules: You must satisfy Australian residency requirements.

Before receiving JobSeeker, you may need to serve waiting periods designed to ensure you use existing funds before accessing government support. Once eligible, you must also meet mutual obligations to continue receiving payments. For those aged 60 and over, this can be fulfilled by completing 30 hours per fortnight of approved voluntary or paid work-or a combination of both.

Accessing your super as an over-60 jobseeker

If you've stopped working after turning 60 for whatever reason, you can access the super you've built up as long as you meet some important conditions first. To access your super, you must meet a condition of release, such as:

• Retirement

Super is no longer locked up for those who've stopped a job after 60. The good news is you don't need to officially say you're 'retiring' for good.

This means that, like Sandra in the example given below, you can still receive JobSeeker payments while topping up your income with an account-based pension as part of a 'transition' to retirement plan.

Real-world example:

Sandra, 62, has been receiving JobSeeker payments for 12 weeks. She stopped working as a hairdresser at 60 and is fulfilling her mutual obligations through volunteer work. With $500,000 in super, Sandra accesses $200,000 to start an account-based pension, leaving the remainder in her accumulation account. This additional income allows her to cover essential expenses while maintaining her full JobSeeker payment.

• Severe financial hardship

This condition applies if you've received income support payments for 26 consecutive weeks and can demonstrate financial difficulty.

If so, you may be able to withdraw up to $10,000 tax-free each year. If you've received 39 cumulative weeks of income support after age 60 you can withdraw your entire super balance tax-free.

For example, Wendel, 60, has been on JobSeeker payments since his employment ended at 58. Initially, he withdraws $10,000 under the severe financial hardship condition.

Once he has received JobSeeker for 39 weeks after turning 60, he accesses enough of his super balance to set up an account-based pension for ongoing income.

• Transition to Retirement (TTR) Pension

When you hit the age of 60, you can start a TTR pension, which allows you to withdraw between 4% and 10% of your superannuation balance annually.

While payments are tax-free the pension is assessed as an asset and income under JobSeeker's means tests.

Real-world example:

Alexis, 60, needs $45,500 annually to meet living expenses. Her adviser recommends a TTR pension of $260,000, which provides $26,000 in income, alongside $19,500 from JobSeeker payments. This setup ensures she has sufficient funds without exceeding JobSeeker thresholds.

Some final thoughts

While you're busy searching for your new role, understanding how JobSeeker payments interact with super gives you a valuable extra income stream to keep up your sleeve. For many, accessing super at this stage is a practical strategy for addressing cash flow concerns.

As you'd expect, these options need to be thought through carefully and financial advice can assist to ensure you make a prudent choice.

Keep in mind there can be hefty fines if you break the law when it comes to satisfying the conditions of release on super. But, done the right way, and your hard-earned super can act as a much-needed lifeline during an otherwise tough time.

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