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Investor Education > Pension > When can I start an account based pension?


To be eligible to start an account based pension you need to meet certain conditions of release. This is generally when you’ve reached the age of 60 and retired or you have reached your preservation age. To invest in an account based pension you can only use superannuation savings that are considered unrestricted non-preserved. For your superannuation benefits to be considered as unrestricted non-preserved you may meet one of the following criteria:

  • You have reached the age of 65
  • You have reached the preservation age (see below) and permanently retired
  • You have ceased employment after age 60 or
  • You are permanently incapacitated

Your preservation age depends on where you were born:

Date of birth Preservation age
After June 1964 60
July 1963 - June 1964 59
July 1962 - June 1963 58
July 1961 - June 1962 57
July 1960 - June 1961 56
Before July 1960 55

Meeting a condition of release to commence a pension will provide access to the tax advantages of an account based pension. Payments and investment returns in pension will be tax free.

Fund managers will have a minimum investment required in order for your account based pension to be set up.

Transition to retirement commencement
If you have reached your preservation age but still currently in the workforce, you may be able to commence a Transition to Retirement (TTR) pension. This strategy allows you to restricted access your superannuation savings with attractive tax benefits. A TTR strategy involves commencing a pension whilst you salary sacrifice surplus income into a new superannuation fund. This is a complex area and we recommend that you seek professional fee for service advice to determine whether the strategy is right for you.


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