Pension Age vs Preservation Age

Written by Hein Preller , Posted in SMSF Topics

Difference between Age Pension and Preservation Age

Many people are confused about the difference between Age Pension age and Preservation Age. They don’t know what they are and they are unaware of what they are entitled to when they reach the specified age. Put simply: Age Pension age is the age at which you can claim your state pension. Preservation Age, on the other hand, is the age at which you can access your SMSF benefits.

What are the Age Pension and Preservation Age

  • Age Pension age is the age at which you are eligible to claim Age Pension and receive benefit payments from the Government. Age Pension has been increasing slowly over the past few years. Your Age Pension age may be 65, 65.5, 66, 66.5 or 67, depending on the year you were born. In the Federal Budget 2014-2015, Joe Hockey announced that the Age Pension would be increased to 70 years.
  • Preservation age is the age at which you can retire and access your superannuation benefits. Benefits here mean the contributions that you made when you were working. You can receive payments from your SMSF only when you reach preservation age. Currently, your preservation age could be 55, 56, 57, 58, 59 or 60, depending on when you were born.

However, in order to access your super benefits, you must meet two conditions:

  • Reaching preservation age.
  • Retiring from the workforce.


If you have reached Preservation Age and you want to access your super, but you do not intend to retire, you can start a Transition To Retirement.For more info about how Transition to Retirement can help you access your benefits, please click here.





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Hein Preller

Hein is a Director at Superannuation Warehouse, specialising in setting up new SMSF's. Hein's company performs all the annual administration tasks consisting of preparing financial statements, lodging a tax return and arranging the audit.

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