If you are nearing your retirement, it is important to know about the recent changes to preservation ages. As of 1 July 2019, the preservation age has increased, increasing the age from which a person is able to access their superannuation.
What is the preservation age?
Your preservation age is the age at which you can access your superannuation funds. You need to meet a condition of release, such as:
- Reach your preservation age and retire
- Cease an employment arrangement after age 60
- Reach preservation age and implement a transition to retirement strategy
- Turn 65, whether you remain in the workforce or not
What is my preservation age?
The table below outlines the current preservation ages, based on your date of birth.
|Date of birth||Preservation age|
|Before 1 July 1960||55|
|1 July 1960 – 30 June 1961||56|
|1 July 1961 – 30 June 1962||57|
|1 July 1962 – 30 June 1963||58|
|1 July 1963 – 30 June 1964||59|
|From 1 July 1964||60|
What does this mean?
You may find yourself having to work longer before you are eligible to access your superannuation funds. From the beginning of the financial year, if you are turning 57 between 1 July 2019 and 30 June 2020, you will now have to wait until you are 58 before you can access your superannuation. The age increase will also delay your opportunity to utilise the transition to retirement strategy, which allows you to access up to 10% of your super as part of your income stream as you continue to work.
When planning your retirement, you need to consider many factors to prepare yourself both financially and emotionally. At The Farm Protectors, we can help you plan your retirement and make it a top priority to protect your future.