Have you given any thought to the question of when you will retire? Do you know what age other people retire in Australia? When can you access your super, and how about age pension?
If you’ve found yourself unable to answer these questions, keep on reading this article or watch our informative video for a full, straightforward explanation.
We are going to provide an overview of the retirement age and the factors influencing your retirement. Afterwards, we hope you feel confident about how and when you can retire in Australia.
Common Ages For Retirement In Australia
In Australia, there is no specific age for retirement. The decision of when to retire typically depends on several individual factors.
This personal decision is often influenced by financial situation, the availability of work, the age requirements to claim Age Pension, and the ability to access the money in Super Funds.
The Average Retirement Age in Australia
The Australian Bureau of Statistics has collected extensive data regarding the age Australians retire and have published a report discussing these findings: Retirement & Retirement Intentions 2016-2017.
According to this report, the average retirement age of people who retired in the previous 5 years is 62.9 years old. Is this number similar to what you have in mind for when you retire?
We were surprised by these findings – We predicted it would be closer to the age of about 65. Although, when you think about it, it makes sense, because retirement occurs gradually.
In the age groups of:
- 45-49 years – only 5% are retired
- 65-69 years – 64% are retired
- 70 years or older – only 82% are retired
Top-3 Common Reasons For Retirement
So people retire at different ages – why is that? What are the primary reasons for them to retire?
Retirement Reason #1
The main reason indicated by both men and women is that they reached retirement age, were eligible to claim aged pension and were able to access the money in the superannuation fund.
36% of all men and 22% of all women pointed out that these were the primary reasons for their retirement.
Retirement Reason #2
The next most frequently indicated reason for retirement is “own sickness, injury, or disability”. In particular, more than 20% of men retired due to this reason. When people retire with these reasons, they are unlikely to enjoy retirement, especially at the beginning stages of retirement.
It is very important to proactively maintain your health. You can find practical ideas and free support from the Australian government from another post – 7 Secrets To A Happy Retirement: Surprising Research Findings.
Retirement Reason #3
The third most common reason for retirement is retrenchment, dismissal, and no work available. Termination of employment may occur unexpectedly in a number of different ways, including resignation, redundancy, abandonment, dismissal, and breach of contract.
This is a notable point, as people who retired with these reasons were typically unprepared or unexpected for retirement. We should always keep in mind that your employment may not last as long as you think or wish.
Seeing that the most indicated reasons for retirement are eligibility for the superannuation and age pension, let’s take a closer look at them in detail.
When Can I Access My Super?
You can access the money in your superannuation fund once you reach “preservation age”. This is the minimum age, set by law, that your super must be preserved until. It is determined by when you are born.
|Date Of Birth||Preservation Age in Years|
|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|
When Am I Eligible For Age Pension?
The age requirements for age pension are different from the superannuation eligibility, although they are also influenced by when you were born.
It is actually similar to the retirement age in Australia because most people generally rely on the age pension or other government allowances as their primary income during retirement. This is 49% of all men and 45% of all women, to be precise.
So, what are the age requirements of the Age Pension? Here’s your answer.
|Before Jul 1952||65 years|
|1 Jul 1952 – 31 Dec 1953||65 years and 6 months|
|1 Jan 1954 – 30 Jun 1955||66 years|
|1 Jul 1955 – 31 Dec 1956||66 years and 6 month|
|From 1 Jan 1957||67 years|
|After that, the retirement age will go up 6 months every 2 years until 1 Jul 2023|
If you would like to know more about the Age Pension, you can take a look at the following posts:
- Age Pension Australia – In A Nutshell
- Age Pension Assets Test – Easily Explained!
- An Overview of INCOME TEST (Age Pension)
- Deeming Explained Simply – Age Pension Income Test
What age do you plan on retiring? Has this information helped you to decide? Let us know in the comments below.
We hope that what you’ve learned is a good starting point to think about your retirement age, and if you want more Retirement tips and information, you can check out all of our other free learning articles on our website or videos on our YouTube channel.