With the use of lots of acronyms and references to legislation, superannuation can certainly sound like a different language.
I will use this segment for the next few months to try to explain some of these terms in simple English.
Preservation Age is the age at which you can access your superannuation benefits, provided you have also met a condition of release.
Preservation age varies according to your age, as set out below:
- For a person born before 1 July 1960 – 55 years
- For a person born during the year 1 July 1960 to 30 June 1961 – 56 years
- For a person born during the year 1 July 1961 to 30 June 1962 – 57 years
- For a person born during the year 1 July 1962 to 30 June 1963 – 58 years
- For a person born during the year 1 July 1963 to 30 June 1964 – 59 years
- For a person born after 1 July 1964 - 60 years
Conditions of release include:
- Attaining age 65
If you die or become disabled, you will meet a condition of release regardless of your age.
You can also access part of your benefit by way of a Transition to Retirement Income Stream once you reach preservation age, as set out in my previous update.