Preservation, Pension and You

A lot of people refer to 55 being the age that a Transition to Retirement Pension(TRAP) or Account Based Pension is able to be started, this is not exactly the case.

It is actually the Preservation Age that is important, it just so happens that 55 has been the universal preservation age for the last 10 years.

This is about to change, from 1 July 2015 those who turn 55 post 30 June 2015 will be subject to an increasing preservation age based on their date of birth.

From 1 July 2015 preservation age will increase to 56 and continue incrementally until the age of 60 in 2024 where it will stay indefinitely.

Below is a table that details the correlation between date of birth and the increasing preservation age.

Date of Birth Preservation Earliest Release Date
Before 1 July 1960 55 Rules Unchanged
1 July 1960 to 30 June 1961 56 From 1 July 2016
1 July 1961 to 30 June 1962 57 From 1 July 2018
1 July 1962 to 30 June 1963 58 From 1 July 2020
1 July 1963 to 30 June 1964 59 From 1 July 2022
After 30 June 1964 60 From 1 July 2024

Here are some common examples that may be similar to your own set of circumstances.

Example 1: Person born 26 June 1960

The client is able to start a pension at any time after turning 55 on the 26 June 2015 (55th birthday).

Date of Birth Preservation Earliest Release Date
Before 1 July 1960 55 Rules Unchanged


Example 2: Person born 15 October 1960

The client turns 55 post 30 June 2015 thus his preservation age based on DOB is 56 and can start a pension at anytime after 15 October 2016 (56th Birthday).

Date of Birth Preservation Earliest Release Date
1 July 1960 to 30 June 1961 56 From 1 July 2016

Example 3: Person born 3 March 1963

The client turns 55 post 30 June 2015 thus his preservation age based on DOB is 58 and can start a pension at anytime after 3 March 2021 (58th Birthday).

Date of Birth Preservation Earliest Release Date
1 July 1962 to 30 June 1963 58 From 1 July 2020