The back’s gone, the knees are shot and you’ve had enough of the weekly grind. It’s time to prepare for retirement. The first step? Finding out the retirement age for men!
Well, you’ve come to the right place, mate.
What Is the Retirement Age for Males in Australia?
The average retirement age for men in Australia is 65 ½, but the definition of retirement has changed vastly over recent years, meaning that the age a man can retire can vary between 60 and 67.
Specifically, there is a superannuation retirement age and an Age Pension age. Each retirement age has different eligibility criteria and has its own way of assisting in covering retirement expenses.
Let’s take a look at each retirement age and what it means for you.
Superannuation Retirement Age for Men
When it comes to superannuation, you can either have no access, limited access or full access. In general, if you have not yet reached your superannuation preservation age, then you have no access to your superannuation. If you have reached your superannuation preservation age then, at the very least, you have limited access. Full access to your super becomes available if you meet the superannuation definition of retirement or attain age 65.
Here’s a run-down of the ways you are eligible for limited access or full access.
Limited Access to Super for Men
If you have attained your superannuation preservation age, you are able to access your super even if you are still working.
Once you have reached your preservation age, you can use your superannuation to start a transition to retirement income stream. A transition to retirement income stream is a type of superannuation pension that allows you to receive pension income equal to between 4% and 10% of your balance each financial year.
Transition to Retirement (TTR) pension income streams can provide income that can supplement your work-related income, allow you to reduce working hours, provide you with additional income to pay down debt, or even implement a transition to retirement strategy.
This video explains exactly how a TTR Pension works:
Full Access to Super for Men
To get full access to your super, you need to either meet the superannuation definition of retirement, or attain age 65.
Beginning with the latter, all you need to do is blow out 65 candles and you have complete access to your total superannuation balance. This can be taken as ad-hoc lump sum withdrawals, or you can use your super to commence a superannuation income stream, such as an account-based pension.
If you have not yet attained age 65, you can access your super in full if you have either:
- Reached your superannuation preservation age and are retired with no intention of returning to work; or
- Have had an employment arrangement come to an end after reaching age 60.
By meeting either of these definitions, you can have full access to your super.
Related Article: How Much is Enough for Retirement (8 Considerations)
Age Pension Age for Men
The Age Pension age for me is 66 years and 6 months of age if you were born between 1 July 1955 and 31 December 1956. If you were born on or after 1 January 1957, your Age Pension age is 67.
Once you have reached your Age Pension age, you will be assessed under the Centrelink Income Test and Assets Test to determine your eligibility to Age Pension payments and the amount to be received.
In addition to the Income and Assets Tests, the other factors that will influence the level of Age Pension payments you are eligible to receive will be based on whether you are a homeowner or non-homeowner and whether you are single or a member of a couple.
As you can see, the retirement age for men has a few definitions, depending on whether you are transitioning into retirement, completely retired, or looking to claim the Age Pension. Either way, I hope this article provided you with some guidance.
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