When the current preservation legislation was established in 1999, a formula to increase the age for retirement related issues became effective on 1 July 2015.

The preservation age will progressively from age 55 to age 60, when it will progressively increase until it reaches age 60 on 1 July 2024.

The superannuation impacts include:-

• accessing benefits under conditions of release that are based on perseveration age, such as retirement
• the commencement of a transition to retirement pension, and
• access to benefits under financial hardship provisions

The changes outside the superannuation fund itself: are-

• the taxation of superannuation payments 
• the taxation of employment determination payments, and
• spouse contributions splitting

As an illustration of the new preservation age formulas, for those born between 1 July 1960 and 30 June 1961, the required age is 56 years.

By PlannerWeb