Superannuation what is preservation age

You will see that the preservation ages increases gradually between age 55 and 60 for those born after June Search Search.

Deferred Members. Pension Members. Your pension. Exchange for a lump sum. Pension payments. Help for families. About SASS. About SSS. About PSS. Scheme Legislation. Open Access Information. Complaints and Disputes. Contribution calculators. On 10 March you will be turning Conversely by deferring accessing the Pension withdrawal until after 10 March , when you turn 60, then the Pension withdrawn will be tax free.

However you will need to assess your own individual circumstances to determine if a Pension should be commenced. The alternative way to access your Super Benefit when you are aged between preservation age and 59 and "Retired" is a Lump Sum withdrawal.

Under the "Proportioning Rule" and where the Member is aged between preservation age and 59, the "Tax Free" Component of the Lump Sum withdrawal is tax free. The "Taxable" Component of the Lump Sum withdrawal is taxed as follows:. The amount up to the low rate cap amount is tax free. The application of the low rate threshold for super Lump Sum payments is capped. The low rate cap amount is reduced by any amount previously applied to the low rate threshold.

The process to calculate the tax on Lump Sum withdrawals paid to a Member who is aged between preservation age and 59 is as follows:.

Alternatively, if you have commenced a Pension from your SMSF, you have the choice to make either Pension or Lump Sum withdrawal in addition to the annual minimum pension amount, which must be made as Pension withdrawals. We caution that Pension withdrawals and Lump Sum withdrawals are two different withdrawal types and different rules apply. For more information on the difference between Pension withdrawals and Lump Sum withdrawals, please click here.

If you are aged between preservation age and 59 and "Retired", you are not required to access your Super Benefit as either a Pension or a Lump Sum Withdrawal. The choice is entirely yours. In fact you can let your Super Benefit accumulates in the super environment indefinitely.

For more information on Transfer Balance Cap, please click here. It should be noted that any monies you access as a Pension may be taxable as detailed above. These contributions are not preserved and can be immediately withdrawn as a Lump Sum or Pension if you have commenced an additional SABP using the contribution amount at any time following the contribution.

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Where this website refers to a particular financial product then you should obtain a Product Disclosure Statement PDS relating to that product and consider the PDS before making any decision about whether to acquire the product. Please try again later. Industry Super. Home Retirement Retirement calculators When can I access my superannuation? When can I access my superannuation? Preservation age explained. When can I access my super? What can I do now that I can access my super?

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