While many of us dream of retiring early there are two age rules that can have an impact on your choices if you don’t have savings outside of superannuation. These are the ages at which you are eligible to access your superannuation and the aged pension (if you are eligible) to fund your retirement.
Preservation age
Generally, it’s only possible to withdraw your super after you’ve reached your ‘preservation age’ which is between 55 and 60, depending on when you were born. The table below can help you identify your preservation age:
It is also important to know that while you can access some of your super at this age you won’t be able to access all of it until you meet the conditions of super release.
Conditions of super release
Once you have reached preservation age you will be able to access some of your super while you are still working. To receive lump sums, you will need to meet one of the following conditions:
· Have reached preservation age and be fully retiring
· Be turning 60 and stopping work after age 60
· Turning 65 (even if you are still working)
· Or have met special circumstances that allow you early access to super
When are you eligible for the Age Pension?
Your eligibility for a full or part Age Pension from the government depends on you reaching your pension age and satisfying an income and assets test, as well as other requirements.
Why you need a financial planner
All this information is a handy starting point, but retirement comes in many shapes and sizes including your expectations of a modest or comfortable retirement. You may need to consider the complexities of your circumstances such as current level of debt and assets, tax implications and what strategies need to be put in place to help you achieve your desired retirement age. An experienced financial planner will work with you taking all the details into account. Our clients say that the peace of mind they achieve after seeking our advice is invaluable. The last thing you want to be doing in retirement is worrying about money!
If you are thinking about retiring and wondering what age is achievable for you get in touch.
