Preservation age: I’m 58. Can I withdraw my super benefits?

Q: Can you please tell me whether I can withdraw my super benefits when I retire at age 58?

This answer assumes that your super benefits are preserved, and the answer to your question depends on your date of birth. Under normal circumstances, access to superannuation benefits requires certain conditions including:

• Reaching preservation age, and
• Retiring.

Note: If your super benefits include any non-preserved benefits, then different rules apply. I explain how you can access non-preserved benefits in the article Unrestricted access to super, sometimes.

Preservation age

Preservation age ranges from age 55 to 60 years, depending on your date of birth. If you were born before July 1960, then your preservation age is 55. If you were born on or after 1 July 1964, then your preservation age is 60 years. If you were born after June 1960 and before July 1964, then your preservation age will be 56, 57, 58 or 59 (see table below).

So, the short answer to your question is: if an individual has reached his or her preservation age, and then retires, he or she can withdraw any preserved super benefits. Remember, tax may be payable on any super benefits withdrawn before the age of 60. I explain the tax rules when withdrawing benefits before age 60 in the article Retiring before the age of 60: the tax deal.

Source: Australian Taxation Office superannuation website (www.ato.gov.au/super)

Note: If you have reached your preservation age but say, you don’t intend to retire then you must satisfy another condition of release to be able to access your benefits. Examples of some of the more common conditions of release are:

• starting a transition-to-retirement (TRIP). A TRIP is a special type of income stream/pension that permits an individual to access up to 10% of his or her pension assets each year without retiring, provided the individual has reached preservation age
• reaching the age of 65
• resigning or otherwise leaving a job on or after the age of 60

I explain the other conditions of release in the article 12 legal reasons to cash your super.

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