Discover the latest in superannuationSPONSORED POST
Did you know? That 56 is the new 55!
Have you heard the preservation age for access to your superannuation is changing? Here’s what you need to know.
- Your cheat-sheet to financial lingo
- Financial planning for over 50s: what you need to know
- How to access your super while you’re still working
Financial planning is all about making the most of what you have. So knowing the latest changes in superannuation is more important than ever.
3 things you need to know today about accessing your super
- Once you reach your preservation age, and permanently retire from the workforce, you can access your superannuation.
- You can also access a limited amount of your super while you are still employed via a transition to retirement pension.
- If you are not yet 55, and not due to turn 55 before 1 July 2015, then your preservation age will actually commence from your 56th birthday. How does this work exactly? For example, if you turn 55 in August 2015, then your preservation age will in fact be 56. This means that you will have to wait until your 56th birthday before you can begin to access your super.
As you can see from the table, the preservation age gradually increases in one year increments before finally reaching 60 for those born after 30 June 1964.
|Date of birth||Preservation age|
|Before 1 July 1960||55|
|1 July 1960 — 30 June 1961||57|
|1 July 1962 — 30 June 1963||58|
|1 July 1962 — 30 June 1963||59|
|After 30 June 1964||60|
It’s important to bear in mind that the increased preservation age also impacts the tax rate of any employment termination payment which you may receive from your employer.
As you can see, it’s important to understand how the increase in the preservation age may impact you, and how it should be incorporated into your retirement and tax planning. Speak to your Bridges financial planner to find out more.