Preservation Age and Qualifying Age: What’s the difference?

2 March 2023

If you're thinking about retirement, you may be starting to ask questions like 'what age can I access my super?' Or, 'when am I eligible for the Age Pension?' Understanding what your Preservation and Qualifying Ages are can help you find the right answers.

When it comes to super, retirement, and the Age Pension, there are 2 important numbers you need to be aware of: your Preservation Age and your Qualifying Age. Here, we’ll outline the purpose of each and the difference between them.

Preservation Age – minimum age to access superannuation

What your Preservation Age is

Generally, your Preservation Age is the minimum age you must reach before you can access your super. It varies depending on the year you were born, as you’ll see in this table. 

Visit the ATO website for the latest information on Preservation Ages.

Other conditions of release for superannuation 

In addition to reaching your Preservation Age, to access your super you’ll also need to:

• have permanently retired, or
• want to transition to retirement while you’re still working.

Regardless of your circumstances and whether you’re working, everyone can access their super at age 65. At this age, even if you’re still working, you’ll have full access to your super.  

Visit the ATO website to learn more about when you can access your super. 

Accessing super before your Preservation Age

In some cases you may be able to access your super before your Preservation Age, such as:

• in times of financial hardship
• on compassionate grounds
• if you’re a temporary resident who’s leaving the country.

Things you can do once you reach your Preservation Age  

Choose to retire or keep working  

You don’t need to retire if you don’t want to. If you continue working and earning an income beyond your Preservation Age, your super will continue to accrue. You’ll automatically be able to access it once you reach the age of 65.  

If you keep working after you reach your Preservation Age, you could also decide to transition into retirement with AustralianSuper's TTR Income account. This may allow you to cut back the hours you work to either: 

• save more super – by adding to your super from your before-tax salary (using salary sacrifice¹),
  or 
• work less – using your super to top up your reduced take-home pay.   

This account may allow you to cut back the hours you work, while drawing on your super to make up for a reduced income. 

If you choose to retire after you’ve reached your Preservation Age, you’ll be able to start accessing money from your super.  

Start withdrawing super once you’ve met a condition of release  

Once you’ve reached Preservation Age and retire or are over the age of 65, there are several ways you can access your super:  

• You can take your super as a lump sum. 
• You can set up an account based pension and draw a regular income, while your super stays invested.  

Keeping your super invested means you could continue to benefit from investment returns in retirement.

AustralianSuper’s account based pension is called Choice Income. It allows you to control how much super is released to you and how often, a bit like receiving a salary². You can choose to be paid every 2 weeks, once a month, once every 3 months or twice a year. It's up to you, but you must take a minimum amount every year. Learn more about minimum payments.  

Your Choice Income account is flexible so you can also change your payment and investment options at any time.

Qualifying Age – minimum age to access the Government Age Pension 

What your Qualifying Age is 

Your Qualifying Age is the age at which you're able to access the Government Age Pension, if you meet eligibility requirements.

The following table can help you find your Qualifying Age:

Source: Visit the Department of Social Services, Australian Government website for the latest information. Last updated 19 January 2023.

As you can see, your Qualifying Age is higher than your Preservation Age. That means that even if you’ve reached the age you can access your super, you may be a number of years away from being eligible to receive the Government Aged Pension.

Other eligibility requirements for the Government Age Pension

There are other factors that determine your eligibility for the Government Age Pension, including your:

• residency status;
• income; and
• assets.

Centrelink uses 2 tests to work out your eligibility and calculate any Government Age Pension payments you may receive. They are: the Assets test and the Income test.

Get support to plan your retirement

If you feel unsure about any of the information above, speaking to a qualified financial adviser who can help clarify things for you.

If you’re ready to plan your retirement, we have different ways to help. Register for a free webinar and explore our helpful articles and guides. We can also help you connect with an accredited financial adviser³, for personal advice tailored to your needs and goals.

EXPLORE YOUR ADVICE OPTIONS

References:
1. Salary sacrifice may affect some government benefits and employee benefits. Consider getting financial advice before deciding if a salary sacrifice arrangement is right for you.
2. Minimum pension income amounts apply depending on your age. For more information refer to the Choice Income PDS.
3. Personal financial product advice is provided under the Australian Financial Services Licence held by a third party and not by AustralianSuper Pty Ltd. Fees may apply.