What is the retirement age in Australia?

What is the retirement age?

In Australia, you generally have the flexibility to decide when you want to retire.

Now you’re probably wondering what’s stopping you from retiring tomorrow. One of the important things to think about is how you'll fund your retirement. That means asking yourself the big question: when can you afford to retire? This is where rules around accessing superannuation and retirement benefits come into play. Importantly, age thresholds, such as the preservation age and the Age Pension age, could affect your decision on when to retire.

What is the preservation age?

The preservation age is the earliest age that you can generally access your super on a retirement basis.

You can access some, or all of your super when you satisfy a condition of release, such as:

permanently retiring from the workforce after you reach your preservation age
starting a transition to retirement strategy after you reach your preservation age
turning 60 and leaving or changing your employer
turning 65

The preservation age is different for everyone and will depend on your birth year.

Take a look below to see when you might be able to access your super.

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
From 1 July 1964	60

Date of birth	Before 1 July 1960
Preservation age	55

Date of birth	1 July 1960 – 30 June 1961
Preservation age	56

Date of birth	1 July 1961 – 30 June 1962
Preservation age	57

Date of birth	1 July 1962 – 30 June 1963
Preservation age	58

Date of birth	1 July 1963 – 30 June 1964
Preservation age	59

Date of birth	From 1 July 1964
Preservation age	60

Date of birth	Age Pension age
1 July 1952 – 31 December 1953	65 years and 6 months
1 January 1954 – 30 June 1955	66 years
1 July 1955 – 31 December 1956	66 years and 6 months
Born on or after 1 January 1957^*	67^*

Date of birth	1 July 1952 – 31 December 1953
Age Pension age	65 years and 6 months

Date of birth	1 January 1954 – 30 June 1955
Age Pension age	66 years

Date of birth	1 July 1955 – 31 December 1956
Age Pension age	66 years and 6 months

Date of birth	Born on or after 1 January 1957^*
Age Pension age	67^*

*expected from 1 July 2023

Check the Services Australia website for the latest information on the Age Pension age.

Apart from the age threshold, you must also meet residency requirements, and something called a "means test". This test looks at your income and assets to see if you qualify for financial help.

How much do you need to retire?

Working out how much you'll need to save for retirement can be daunting. The Association of Superannuation Funds of Australia (ASFA) has estimated how much couples and singles aged 67 need for a comfortable or modest retirement, shown in the below table.

Superannuation balances required for retirement at age 67

	Couple	Single
Comfortable retirement	$690,000	$595,000
Modest retirement	$100,000	$100,000

	Comfortable retirement
Couple	$690,000
Single	$595,000
	Modest retirement
Couple	$100,000
Single	$100,000

Source: ASFA Retirement Standard, March quarter 2023.

Note: Both budgets assume that the retirees own their own home outright and are relatively healthy. All figures in today’s dollars using 2.75% AWE as a deflator and an assumed investment earning rate of 6 per cent. The lump sums required for a comfortable retirement assume that the retiree/s will draw down all their capital, and receive a part Age Pension. The fact that the same savings are required for both couples and singles for a modest requirement reflects the impact of receiving the Age Pension

For more information on how the table has been calculated, visit the ASFA website.

Keep in mind that these are only general estimates. While these may be a useful starting point to help you plan your retirement, you should consider speaking with a licensed financial adviser about your personal circumstances.

When should I retire?

Even though the preservation age and Age Pension age may be relevant considerations, there's no one age that's perfect for retirement. The important thing is to plan ahead for the possibility of a longer retirement than you might think. As Australians are living longer, it's important to consider that you may need more savings to avoid running out of money later in life. In some cases, this might mean exploring the idea of working longer than you originally expected.

For many people, it's not too early to start planning about their retirement and generally the sooner they start planning, the more time they’ll have, which can help better preparing themselves for the future. Ultimately, it's your decision when you start slowing down or stop working altogether, based on your circumstances and financial ability to do so.

Need help deciding when to retire?

If you’re a Rest member who wants to speak with a professional about your super or retirement plans, you can book a call with a Rest Adviser. Out of pocket advice fees apply for retirement planning. We’ll always talk to you about any fees first.

What to consider when planning your retirement?

Everyone’s goals and lifestyles are different, which means the amount you need for your retirement is also going to be different. It depends on many factors, with one important factor being how much money you'll need to support your lifestyle once you stop working. This will depend on a range of factors, including:

your retirement goals
your existing finances
your expected expenses.

Ask yourself:

what kind of lifestyle are you aiming for after you retire? i.e. comfortable, modest or something else.
based on your preferred lifestyle, how much money do you think you’ll need each year?
how many income source(s) will you have, and what type(s)? e.g. super, the Age Pension, and any investments you might have.
will you have any debts, ongoing costs or other expected expenses? i.e. mortgage repayments or rent and medical expenses
how close are you to retirement? If you’re planning to retire in 5 years, your plan could look very different from someone who’s retiring in 10 years.

These are only some considerations, so take the time to carefully plan and consider your retirement goals and finances, and if required speak to a licensed financial adviser. This may help you set yourself up for a retirement that meets your unique needs and aspirations.

Transition to retirement

If you’re ready to slow down and reduce the hours you work, accessing some of your super through a transition to retirement (TTR) account can be one way to supplement your work income as you approach retirement age. Depending on your circumstances, it may be possible to maintain a similar level of take-home pay.

With a transition to retirement account, you can access your super savings while you’re still working. It’s an option for those who may not be ready to fully retire but want to gradually reduce their working hours while still receiving an income.

To be eligible for a transition to retirement strategy, you must have reached your preservation age. Generally, this strategy may suit those who:

are still in the workforce
have existing super benefits
want to continue to receive super contributions
are transitioning to retirement.

It’s important to keep in mind that accessing your super through a TTR income reduces your retirement savings and may impact your government benefits and life insurance. It’s a good idea to speak with a financial advisor to make sure a transition to retirement strategy is right for you and your retirement plans.

Planning for retirement

What are the latest Age Pension rates and limits?

In this article, we’ll walk you through the current pension rates and changes to the Age Pension limits from 1 July 2023.

How much super do I need to retire?

Learn more about how much you might need to retire, retirement budgets, retirement lifestyles and how much you might need each year in retirement.

Retirement planning checklist

Here are three steps to get your retirement planning underway right now.

What is the retirement age in Australia?