From July 1 this year there were some significant changes that came into effect involving the legislation surrounding access to superannuation.
Up until now, the preservation age relating to access super was 55 – that is, you were unable to access your super until you reached a ‘preservation age’ of 55. In fact, the introduction of the “transition to retirement pension” in 2005 meant that you didn’t even have to retire, but just had to turn 55.
But from July 1, anyone born between 1 July, 1960 and 30 June 30 will have to preserve their super and wait until they turn 56 before they can have the same super access rights as someone who has already turned 55.
But it doesn’t stop there, the preservation age will continue to increase as follows:
- If you were born between 1 July 1961 and 30 June 1962, your preservation age is 57
- If you were born between 1 July 1962 and 30 June 1963, your preservation age is 58
- If you were born between 1 July 1963 and 30 June 1964, your preservation age is 59
- If you were born on or after 1 July 1964, your preservation age is 60
Whilst there have been major changes to legislation surrounding superannuation over the years, this is probably the most significant yet.
This article by the Australian Financial Review Smart Investor explains some of the other changes that have affected superannuation entitlements over the years.
If you would like more information about how these changes could affect you, please do not hesitate to call Andrew on 5331 6550.