The transition to retirement age is your gateway to superannuation utopia. After all these years of contributing, watching and monitoring your superannuation, the day has come where you can finally benefit from it via a transition to retirement pension. And, I’m going to show you how.
Transition to Retirement Age
Your superannuation transition to retirement age is the same as your superannuation preservation age – it signifies the age that you are first eligible to access your superannuation, even if you are still working.
Your transition to retirement pension age is determined by your month and year of birth, as detailed in the table below:
| Date of Birth | Preservation Age |
|---|---|
| Before 1 July 1960 | 55 |
| 1 July 1960 – 30 June 1961 | 56 |
| 1 July 1961 – 30 June 1962 | 57 |
| 1 July 1962 – 30 June 1963 | 58 |
| 1 July 1963 – 30 June 1964 | 59 |
| After 30 June 1964 | 60 |
What Age Can You Start a Transition to Retirement Pension?
You can start a transition to retirement pension once you have reached the transition to retirement minimum age, which corresponds with your superannuation preservation age, as shown in the table above.
It should be noted, however, that transition to retirement pension income payments are only guaranteed to be tax-free from age 60, onwards. Transition to retirement pension payments received while under age 60 may incur personal income tax. This is why a transition to retirement strategy is typically only beneficial from age 60 onwards.
Related Article: 3 Reasons You Should Start a Transition to Retirement Pension
Transition to Retirement Age Limit
The transition to retirement age limit begins at age 55 and progresses up to age 60 for when a transition to retirement pension can commence. Then, once you attain age 65, you have met a full superannuation condition of release, meaning your transition to retirement (TTR) pension can convert to an ordinary account-based pension, which has a number of benefits over a TTR pension.
Learn more about account-based pensions
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Frequently Asked Questions
Listed below are some frequently asked questions in respect to the transition to retirement age.
What Qualifies You for Transition to Retirement?
Your age is what qualifies you for a transition to retirement pension. Once you have reached the transition to retirement preservation age, you qualify to use your superannuation accumulation balance to commence a transition to retirement income stream. Your preservation age can be found in the table above.
How Do I Start a Transition to Retirement Pension?
To start a transition to retirement pension, you will need to contact your superannuation provider and ask them if they offer a transition to retirement pension product. If they do, you should read the Product Disclosure Statement (PDS) and Target Market Determination (TMD) to ensure that the you understand how the transition to retirement works, the fees associated, the investment options available and all other factors that allow you to make an informed decision as to whether that particular transition to retirement product is suitable for your needs.
Once you have found a suitable provider of a transition to retirement income stream product, you can use some or all of your superannuation accumulation balance to start a TTR pension by following the procedure and application process advised by your preferred TTR pension provider. Ideally, you should be seeking advice from a licensed financial planner who specialises in retirement planning advice to ensure that what you plan on doing is in your best interest.
When Can I Start a Transition to Retirement Pension?
You can start a transition to retirement pension once you attain your superannuation preservation age. You do not need to be retired to start a transition to retirement pension – it can be started even if you are working full-time or part-time. Your superannuation preservation age is determined by your month and year of birth, as detailed in the table above.
Articles You Might Also Like:
- Transition To Retirement Pension
- Transition To Retirement Rules
- Transition To Retirement Lump Sum Withdrawal
Sources
- SUPERANNUATION INDUSTRY (SUPERVISION) REGULATIONS 1994 – REG 6.01 Interpretation 2023, Austlii.edu.au, viewed 15 August 2023, <http://classic.austlii.edu.au/au/legis/cth/consol_reg/sir1994582/s6.01.html>.
- SUPERANNUATION INDUSTRY (SUPERVISION) REGULATIONS 1994 – SCHEDULE 1 Conditions of release of benefits 2023, Austlii.edu.au, viewed 15 August 2023, <http://classic.austlii.edu.au/au/legis/cth/consol_reg/sir1994582/sch1.html>.
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