Now that we live in the future, the term retirement takes on a range of definitions in Australia. This is due to the flexibility our retirement system offers and the various sources of retirement funding available to us.
Let’s cover all bases so that you know exactly what age you can retire and compare that against the average retirement age in Australia.
Retirement Age Australia
There are four main retirement ages in Australia; three relating to superannuation and one relating to the Centrelink Age Pension.
Superannuation Retirement Age
If you want to access your super, you need to have first met your superannuation preservation age. This could be considered your first retirement age. However, depending on your employment status, attaining your preservation age may only give you partial access to your super.
Related article: Preparing For Retirement in Australia
Your superannuation preservation age is dependant on when you were born and shown in the table below:
|Date of Birth||Preservation Age|
|Before 1 July 1960||55|
|1 July 1960 – 30 June 1961||56|
|1 July 1961 – 30 June 1962||57|
|1 July 1962 – 30 June 1963||58|
|1 July 1963 – 30 June 1964||59|
|After 30 June 1964||60|
Retirement Age Under Age 60
If you have reached your preservation age and are retired, with no intention of returning to full-time or part-time work ever again, then you will have full, unrestricted access to your super. Part-time is defined as 10-30 hours per week.
If you have reached your preservation age and are still working, you can access your super in the form of a transition to retirement (TTR) income stream, which provides limited access to your super.
Retirement Age 60 to 64
If you are aged 60 or over and have had an employment arrangement come to an end after reaching age 60, then all of your super up to that point will become accessible in full, even if you decide to continue working in a different job or capacity.
If you are over age 60 and still working and have simply continued in your existing role, you have access to your super via a TTR pension.
Related article: How Much Super Do I Need to Retire at 60
Retirement Age Over 65
Once you have reached age 65, you can access your superannuation in full, regardless of your employment status. Your super can be taken as a lump sum, an income stream, or a combination of both.
Related article: How Much Super Do I Need to Retire
The Centrelink Age Pension age is based on when you were born and is detailed in the table below.
|Date of Birth||Your Age Pension Age|
|1 January 1954 – 30 June 1955||66|
|1 July 1955 – 31 December 1956||66 ½|
|On or after 1 January 1957||67|
Once you have reached this age, you have met your Centrelink Retirement Age and can apply to receive Age Pension payments. Age pension payments are means-tested, based on both an Income Test and an Assets Test.
What Is the Average Age at Retirement in Australia?
The average retirement age in Australia is 59 ½ for men and 52 for women, with an overall average retirement age in Australia being 55 ½. The table below details the average retirement age in Australia, as well as the number of retirees.
|Average Retirement Age||Number of Retirees||Proportion of People Over 45 Retired|
|Women||52.1 years old||2.1 million||43%|
|Men||59.5 years old||1.7 million||37%|
|Men & Women||55.4 years old||3.9 million||40%|
When Can I Retire?
Theoretically, you can retire whenever you want! You needn’t require access to your super or be eligible for the Age Pension in order to retire.
Provided you have sufficient investment assets and income from those investments to cover your lifestyle expenses, then you can retire.
The reason most people wait until being able to access their super or being eligible to receive Age Pension payments before retiring is because super is where much of their savings are held and the tax-effectiveness of super can make your money last longer in retirement. The Age Pension can also supplement your retirement income needs, meaning less of your investments are needed to meet your retirement expenses.
Related Article: Retirement Planning Strategies Australia
Retirement Age Calculator
Alternatively, the retirement age calculator details all the different types of retirement ages, based on when you were born. It shows you the age you can first access your super, your transition to retirement age, your full superannuation retirement age and your Age Pension age.
Our financial planning firm, Toro Wealth, specialises solely in helping 50 to 70 year olds optimise their financial position in the lead up to retirement. If you’re interested in learning more about our service and cost, click here.
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