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Working out your preservation age

Posted on Nov 24, 2015 by admin

Since the retirement terms surrounding superannuation can be technical and complicated, it can be quite easy to get confused when working out when you can retire under superannuation rules or if there are any special conditions you need to meet before you can take your super benefits.

The most important factor every individual needs to be aware of regarding superannuation and accessing super benefits is their ‘preservation age’.

A person’s preservation age is different from the Age Pension age. The Age Pension age is the age that an individual first becomes eligible to claim the Age Pension. Their preservation age is the age they can retire and access their superannuation benefits.

Normally, accessing super benefits requires an individual to meet two conditions; reaching their preservation age and retiring from the workforce

Preservation ages range from 55 to 60 years, depending on a person’s date of birth. Those who were born before July 1960 have a preservation age of 55. Those born on or after 1 July 1964 have a preservation age of 60 years.

Individuals who reach their preservation age and retire can withdraw any preserved super benefits. Those who reach their preservation age but don’t intend to retire must satisfy another condition of release to be able to access their benefits.

Some common requirements of release include:

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