Contact us Contact us

Changes to preservation age

Posted 22 Aug

Since 1 July 2024, the age at which individuals can access their superannuation increased to age 60. So, what does this mean for those planning on accessing their superannuation upon reaching this age?

What is preservation age?

Access to superannuation benefits is generally restricted to members who have reached “preservation age”, which is the minimum age at which you can access your superannuation benefits.

Prior to 1 July 2024, a person’s preservation age could range from 55 to 60 as it depends on their date of birth. Preservation age has been slowly increasing over the years and as finally reached its legislated maximum age limit of age 60, as shown in the table below:

Date of Birth Preservation age
Before 1 July 1960 55
1 July 1960 - 30 June 1961 56
1 July 1961 - 30 June 1962 57
1 July 1962 - 30 June 1963 58
1 July 1963 - 30 June 1964 59
On or after 1 July 1964 60


This means anyone born on or after 1 July 1964 will Since 1 July 2024, the age at which individuals can access their superannuation increased to age 60.

What does this change mean for me?

Once you have reached preservation age, you may receive your superannuation benefits as:

■  A lump sum or as an income stream once you have retired (or a combination of both), or

■  A transition to retirement income stream while you continue to work.

Furthermore, once you turn age 60 your superannuation benefits (ie, any lump sum withdrawals and/or pension payments) will generally be tax-free.

This change simplifies the tax rules as previously those between preservation age and age 60 were subject to tax on lump sum withdrawals and pension payments. Now, the tax treatment of superannuation benefits depends on whether you are above or below age 60 – there is no need to consider preservation age which is based on a person’s date of birth.

Need more information?

It’s important to note that preservation age is not the same as your Age Pension age. To get the Age Pension, you must be age 67 or over, depending on when you were born (and other rules you need to meet). So even if you reach preservation age, it could be some time before you are eligible to receive the Age Pension from Services Australia (ie, Centrelink).

If you’re still wondering what your superannuation withdrawal options are or want to get a specific advice on how tax may apply to your superannuation benefits, transition to retirement or superannuation income streams, contact us today for an appointment.


Related News

Related Blog & Articles

Centrelink and Gifting
Superannuation/SMSF

Centrelink and Gifting


SMSFs vs Super Wraps
Superannuation/SMSF

SMSFs vs Super Wraps


Superannuation Guarantee Liability
Superannuation/SMSF

Superannuation Guarantee Liability