Condition of release
Preservation age is the minimum retirement age at which a superannuation fund member is normally able to access preserved benefits. The preservation age is currently 55, however as shown in the table below, it is being gradually increased so that it will ultimately be 60.
|Date of birth||Preservation age|
|Before 1 July 1960||55|
|1 July 1960 to 30 June 1961||56|
|1 July 1961 to 30 June 1962||57|
|1 July 1962 to 30 June 1963||58|
|1 July 1963 to 30 June 1964||59|
|On or after 1 July 1964||60|
If the member is:
- under 60 years of age - they can access their preserved benefits only when they reach preservation age, cease gainful employment and have no intention to become gainfully employed in the future.
- at least 60 years of age - they can access their preserved benefits when they leave a job.
If a member who is 60 or over ceases one employment arrangement but continues in another employment arrangement, they may cash all benefits accumulated up to that time. All amount accrued after that date will be preserved or restricted non-preserved benefits and cannot be cashed until a fresh condition of release is met.
Transition to retirement
Members who have not retired may access their super with a transition to retirement income stream once they have reached their preservation age.
A transition to retirement income stream must:
- be account-based
- not be commuted unless the member has met a condition of release with no cashing restrictions
- meet the minimum pension standards
- not exceed a maximum of 10% of the account balance at the start of each financial year.
This technical resource is intended for the use of financial advisers only. It is current as at the date of publication but may be subject to change. This publication has been prepared without taking into account a potential investor's objectives, financial situation, needs or objectives. Before making a recommendation based on this material, you should consider its appropriateness based on the client's objectives, financial situation and needs. Rainmaker Group is not a registered tax agent under the Tax Agent Services Act 2009. Your client should refer to a registered tax agent before relying on information published herein that may impact their tax obligations, liabilities or entitlements.
Last modified: Wednesday, September 16, 2020