The milestone for when you reach preservation age and can access your super is now starting to change. The gradual move from 55 – 60 for access to Superannuation has begun.
If you are already over 55 then you can ignore this blog and you should be reading Understanding transition to retirement pensions
If you are over 59 and not in a Transition to Retirement pension then you really need to read this article Aged 59 – 64 and not on a Transition to Retirement Pension – SHAME ON YOU
For those approaching 55, listen up! As we approach 1 July 2015, we encourage you to check if you have met your preservation age requirements prior to planning for the new tax year. You may finally be able to make the most of the superannuation and tax systems and open up some lifestyle options for yourself like reducing work hours or pursuing an alternative career while maintaining a steady income stream.
However if you have not met your preservation age, you may not be able to:
- open a Transition to Retirement (still working) or Account Based (met other condition of release) Pension Plan account;
- withdraw a lump sum super amount (fully retired); or
- process a contributions splitting request.
| From 1 July 2015, your preservation age can range between 55 and 60 years of age, depending on your date of birth. |
| Your preservation age is determined using the following table: |
| Date of Birth Preservation | Age | Preservation age reached in year: |
| Before 1 July 1960 | 55 | 2014-15 |
| 1 July 1960 – 30 June 1961 | 56 | 2016-17 |
| 1 July 1961 – 30 June 1962 | 57 | 2018-19 |
| 1 July 1962 – 30 June 1963 | 58 | 2020-21 |
| 1 July 1963 – 30 June 1964 | 59 | 2022-23 |
| After 30 June 1964 | 60 | 2024-25 |
Using a Transition to Retirement Pension means you can move your funds to Tax Free earnings phase, draw a tax efficient pension and use salary sacrifice at the same time to build a bigger nest egg for retirement. All without reducing your net take home pay! The other option is to use the TTR to reduce your working hours and supplement your lower earnings with a small pension and really transition to your retirement as the strategy intended.
Either way if you are over or approaching your retirement age then speak to a well rated financial adviser as there are a number of very clever strategies around pensions, tax and debt recycling that they can use for you now that you are UNPRESERVED!
Are you looking for an adviser that will keep you up to date and provide guidance and tips like in this blog? Then why now contact me at our Castle Hill or Windsor office in Northwest Sydney to arrange a one on one consultation. Just click the Schedule Now button up on the left to find the appointment options.
Liam Shorte B.Bus SSA™ AFP
Financial Planner & SMSF Specialist Advisor™
Tel: 02 98941844, Mobile: 0413 936 299
PO Box 6002 BHBC, Baulkham Hills NSW 2153
5/15 Terminus St. Castle Hill NSW 2154
Corporate Authorised Representative of Magnitude Group Pty Ltd ABN 54 086 266 202, AFSL 221557
This information has been prepared without taking account of your objectives, financial situation or needs. Because of this you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation and needs. This website provides an overview or summary only and it should not be considered a comprehensive statement on any matter or relied upon as such.
Image courtesy of Stuart Miles at FreeDigitalPhotos.net
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