The purpose of superannuation is to provide benefits for retirement. To ensure this occurs in most cases the Government has legislated that superannuation is ‘preserved’, that is members can’t access their benefits until they meet a ‘condition of release’.
The most common conditions of release are:
- Attaining preservation age: Members who are under 65 and have reached preservation age, but remain gainfully employed on a full-time or part-time basis, may access their benefits as a non-commutable income stream.
- Attaining age 65: A member who reaches age 65 may cash their benefits at any time.
- Retirement: Actual retirement depends on a person’s age and, for those between preservation age and 60 years old, their future employment intentions. A retired member can’t access their preserved benefits before they reach their preservation age which is based on when they were born as listed in the table below.
| Born | Preservation Age |
| Before July 1960 | 55 |
| July 1960 – June 1961 | 56 |
| July 1961 – June 1962 | 57 |
| July 1962 – June 1963 | 58 |
| July 1963 – June 1964 | 59 |
| After June 1964 | 60 |
There are a number of other circumstances in which benefits can be released before reaching preservation age, such as incapacity, severe financial hardship, temporary residents leaving Australia, terminal medical condition. There are specific rules for each of these and some have restrictions on the way the benefits can be received.