Increase in the Preservation age restricts access to Superannuation

The meaning of an individual’s preservation age is set out in the SIS Reg 6.01(2), and varies according to the member’s date of birth.

From July 2015, the previously legislated rise in the preservation age (which has traditionally been 55 years of age) has come into effect.

This means that for individuals born prior to 1 July 1960, their preservation age remains 55, however the preservation age for clients born on or after this date will gradually scale up to 60 years of age as follows:

 

Date of birth

Preservation age

Income year preservation age 1st reached

Before July 1960

55

2015 or earlier

1 July 1960- 30 June 1961

56

2017

1 July 1961 – 30 June 1962

57

2019

1 July 1962 – 30 June 1963

58

2021

1 July 1963 – 30 June 1964

59

2023

After June 1964

60

From 2025 onwards

 

What the above table highlights is that those members born in 1961 (i.e. between 1 July 1960 and 30 June 1961) will now only reach their preservation age when they turn 56, which can only occur during the 2017 year. Accordingly, any COR requiring such members to have reached their preservation age (i.e.) 56 cannot be satisfied until at least the 2017 year.

 

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