For super purposes, turning 55 has traditionally been the year in which you start to access your benefits (for example under a transition to retirement income stream (TRIS)). However, with the auto-rise of the preservation age coming into effect, as of 1 July 2015, persons turning 55 in the 2015/16 year will have to wait until they turn 56 (ie in the 2016/17 year).
The preservation age will continue to rise over the next few years until it plateaus to 60 for those born after 30 June 1964. As a result, the following persons will be able to commence a TRIS from their relevant birthday:
- Persons turning 56 in the 2016/17 year
- Persons turning 57 in the 2018/19 year
- Persons turning 58 in the 2020/21 year
- Persons turning 59 in the 2022/23 year
- Persons turning 60 from the 2024/25 year onwards
Whilst the changes to increase the preservation age are nothing new (having been legislated back in 1999), it is important for advisors to turn their mind to these changes when planning the drawdown phase for their clients.
For further information please contact: