What’s the Retirement age in Australia?
Retirement is one of the biggest milestones in your life. Sometimes it’s a financial decision – whether to retire early or continue working. While other times it’s something more personal or family-related. No matter what it is, the discussion around retirement age is one full of emotion.
For many, retirement is about enjoying the years ahead to celebrate everything you’ve done in life to get to where you are. More time with family, more time to travel and an opportunity to experience new things; whatever retirement means to you, the age you choose to retire will still most likely be based on your financial security. You can find out more about the financial considerations involved with retirement here.
Retirement age in Australia
The financial aspect aside, as it stands, there are prescribed ages at which the government defines retirement age in Australia that may impact you on when you retire.
In 2019, it will be between 55 and 60 years, depending on when you were born, and this age will continue to increase as our population lives longer. This is known as your preservation age, and this is the age at which you can access your superannuation fund.
Your access depends on what year you were born, but even if you’re still in the workforce when you turn 65, your super will available for you to draw on.
The Pension age is currently 65 years and 6 months and is the age at which you can access government pension funds, this will also progressively rise for all Australians.
Here’s a quick guide:
|Birth Year||Preservation Age||Pension Age|
|1949, 1950, 1951||55||65|
|1952||55||65 (if you were born between 1 January 1952 and 30 June 1952)or 65 years and 6 months (if you were born between 1 July 1952 and 31 December 1952)|
|1953||55||65 year 6 months|
|1955||55||66(if you were born between 1 January 1955 and 30 June 1955) or 66 years and 6 months (if you were born between 1 July 1955 and 31 December 1955)|
|1956||55||66 years and 6 months|
|1957, 1958, 1959||55||67|
|1960||55 (if you were born between 1 January 1960 and 30 June 1960) or 56 (if you were born between 1 July 1960 and 31 December 1960)||67|
|1961||56 (if you were born between 1 January 1961 and 30 June 1961) or 57 (if you were born between 1 July 1961 and 31 December 1961)||67|
|1962||57 (if you were born between 1 January 1962 and 30 June 1962)or 58 (if you were born between 1 July 1962 and 31 December 1962)||67|
|1963||58 (if you were born between 1 January 1963 and 30 June 1963) or 59 (if you were born between 1 July 1963 and 31 December 1963)||67|
|1964||59 (if you were born between 1 January 1964 and 30 June 1964) or 60 (if you were born between 1 July 1964 and 31 December 1964)||67|
|1965 or later||60||67|
Even when you make the decision to retire, just over a quarter of ‘retirees’ will return to some form of employment, some out of necessity, while others see it as something they enjoy doing. So even though there may be an age of retirement in Australia, don’t let that define how you choose to retire.
There are other circumstances to consider when planning your retirement age. These considerations are often related to how you tie up loose ends at work or with your business. While they may seem incidental, they can actually have a big impact on the funds you’re entitled to.
For example, redundancy or termination payments (including outstanding annual leave) can be taxed at a lower rate than your other income. Or, if you’re selling your business, you should find out if you’re eligible for the capital gains tax retirement concession. Both of these tax breaks can make a big difference to how you set yourself up financially for retirement.
Obviously, the information we have provided here is to give you an idea of some of the key considerations when it comes to planning for your retirement. We recommend you seek financial advice to help you make the right decisions for your future. After all, putting yourself in the best possible financial position will allow you to make the most of your retirement years with your family and friends.
If you’re nearing your retirement age, it might be time to start considering your future lifestyle. Many retirees find that they feel happier, safer and more connected, living amongst their peers. Retirement village life can offer an excellent sense of community, premium amenities and regular fun activities and events. Check out our happiness report to find out what our residents think, or join us for a tour and find out for yourself!