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.