1 July 2024 - what it means for various issues relating to preservation age

Reaching preservation age is a key concept as it relates to a number of key financial planning issues such as accessing super, tax on super lump sum withdrawals and income stream payments, tax on employment termination payments and the commencement of Transition to Retirement income streams. 

1 July 2024 heralds an important change to preservation age. In this article, we take you through discussion of some common issues which are impacted by preservation age increasing to age 60 from 1 July 2024. 

Preservation age 

Since 1 July 2015, we have seen a gradual increase in preservation age from 55 to 60 so that anyone born after 30 June 1964 has a preservation age of 60. This gradual increase effectively means that anyone who was under age 60 on 1 July 2024 has a preservation age of 60 whereas clients born before 30 June 1964 have already reached their preservation age.

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