Retirement
Near retirement? Check your age
Individuals nearing retirement may find themselves having to work until they are older, as the new financial year brings changes to super access laws and an increase to the pension age.
Near retirement? Check your age
Individuals nearing retirement may find themselves having to work until they are older, as the new financial year brings changes to super access laws and an increase to the pension age.
AMP technical strategy manager John Perri has flagged increases to both the pension age and preservation age as part of a number of key changes to Australian retirement policy.
The preservation age, as it relates to superannuation, is on its way up, effectively increasing the age from which a person is able to begin accessing their superannuation.
From the beginning of the financial year, individuals that are turning 57 between 1 July 2019 and 30 June 2020 will now have to wait until age 58 (from 1 July 2020) to access their super, Mr Perri reported.
This will delay the start of some people accessing the “popular” transition to retirement pension, where a person can access up to 10 per cent of their super as an income stream when combined with paid work, it was noted.
From 1 July, those born between 1 January 1954 and 30 June 1955 will now also have to wait until they turn 66 before they can receive the age pension, Mr Perri said.
The change is part of an ongoing schedule to increase the age pension to 67 by 1 July 2023, the manager said, noting the current maximum rate for the age pension, including supplements, as sitting at $926.20 for a single person per fortnight.
For couples, the rate is $698.10 for each individual over the same period.
Nest Egg recently reported on the underdeveloped nature of Australia’s superannuation framework, showing a stark number of individuals outliving their savings.
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