Preservation Age

Preservation age is the minimum age at which you can access your superannuation savings, provided you also meet a "condition of release" (such as retiring from the workforce). Preservation age depends on your date of birth: it is 55 for those born before 1 July 1960, gradually increasing to 60 for those born on or after 1 July 1964. Anyone born from 1 July 1964 onwards has a preservation age of 60.

Reaching preservation age alone is not enough to access your super — you must also satisfy a condition of release. The most common conditions are: reaching preservation age and permanently retiring, reaching age 60 and ceasing employment with an employer, or reaching age 65 (regardless of work status). Other conditions include permanent incapacity, terminal illness, severe financial hardship (subject to limits), and compassionate grounds (approved by the ATO).

Once you reach preservation age and retire, you can access your super as a lump sum, an account-based pension (income stream), or a combination of both. From age 60, super benefits from a taxed fund are completely tax-free. Between preservation age and 60, there are tax concessions but some tax may apply depending on the components of your benefit. Planning the timing and method of accessing super is a key part of retirement planning.