What happened
The superannuation preservation age in Australia is now 60 for everyone, establishing when individuals can access their super balance after meeting a condition of release. Individuals reaching 60 can also access partial super funds while remaining in the workforce full-time or part-time by starting a transition-to-retirement pension.
Why it matters here
Differentiating between the super preservation age of 60 and Age Pension eligibility is vital for structuring pre-retirement cash flow. Transition-to-retirement pensions allow older workers to supplement earnings or reduce working hours without fully exiting the labor market, optimizing tax outcomes and super contributions in the final working years.
What to watch
Consult your superannuation fund statements and personal financial advice to evaluate whether initiating a transition-to-retirement pension suits your current income strategy.
Source
superguide.com.au