There's no set age that you have to wait for if you want to retire in Australia – and there's also no set age that you must retire. It's up to you to decide when you're ready to start working less or stop work for good.
Age Pension age
66 years, if you were born between 1 January 1954 and 30 June 1955. 66 years and 6 months, if you were born between 1 July 1955 and 31 December 1956. 67 years, if you were born on or after 1 January 1957.
Current Age Pension age
On 1 July 2023, the eligibility age increased from 66 years and 6 months to 67 years (for anyone born after 31 December 1956).
From 1 July, the eligibility age for the Age Pension is 67 for all Australians. Researchers are pushing for the pension age to be increased to 70 by 2050. National Seniors opposes further age increases and suggests an alternative solution to workforce shortages.
When you retire, you may be eligible for government benefits such as the Age Pension or a concession card. The kind of pension and benefits you're entitled to generally depends on your age, assets and income.
The best time to retire for tax purposes in Australia is generally once you attain age 60, as it is at this stage that you will have tax-free access to your superannuation.
Recent research from the Macquarie Business School has recommended further increases to the qualifying age – all the way up to age 70 in 2050. This would see an increase to 68 by 2030, 69 by 2036 and 70 by 2050.
The ASFA Retirement Standard Explainer says a comfortable retirement lifestyle would need $640,000 in super for a couple, or $545,000 for a single person.
Retiring at 60 is the first time you are able to get unrestricted, tax-free access to your super; so there really is no better time to retire. Knowing how much super you need to retire can give you a good idea of what to work towards and how much you need to save between now and then. Hey, you might already be there!
However, the proportion of the population aged 65 and over receiving Age Pension has declined over this period – from 74% in 2001 to 66% in 2017, and then to 62% by June 2021.
China has the world's youngest retirement age, according to data from the Organisation for Economic Co-operation and Development (OECD). For that distinction, it can partly thank a government policy dating back to the 1950s that lets women retire at 50 and men at 60.
You can access your superannuation at 55 if you have reached your superannuation preservation age. You will have limited access to your savings if you are still working, but may have full access to your super in the form of an income stream or lump sum if you have permanently retired.
The Work Bonus income bank is useful for pensioners who wish to work, particularly those who undertake intermittent or occasional work. Note: from 1 December 2022 to 31 December 2023, a one-off, temporary credit of $4,000 applies to Work Bonus income bank balances.
Retiring in your mid-60s still makes sense for many people. At this point, you are old enough to have hopefully amassed sizable savings, but you are still young enough to enjoy active pursuits such as travel.
Overall, retiring at 60 is doable with $500,000 but it may not be doable for you. It really depends on your personal living situation and what your potential expenses are going to be.
This obviously depends on what annual income you want to fund but if you want to be able to afford a comfortable retirement—which is an income of just over $48,000 a year for a single according to the ASFA Retirement Standard—then you need a balance of at least $500,000.
So looking at the table, you can see that a 60-year old male will need a lump sum of almost $500,000 to provide an annual income in retirement of $42,000 for 20 years. These calculations are based on a 20-year time frame because the approximate life expectancy for Australian males is 84 years and 88 for females.
Yes, for some people, $2 million should be more than enough to retire. For others, $2 million may not even scratch the surface. The answer depends on your personal situation and there are lot of challenges you'll face. As of 2023, it seems the number of obstacles to a successful retirement continues to grow.
How long will $800,000 last in retirement? Your money is projected to last approximately 30 years with monthly withdrawals totaling $2,024,574. How long will $1,500,000 last in retirement? Your money is projected to stretch beyond 30 years and you'll be able to make monthly withdrawals beyond $4,000,000.
Assume, for example, you will need 65 per cent of your pre-retirement income, so if you earn $50,000 now, you might need $32,500 in retirement.
You can get your super when you retire and reach your 'preservation age' — between 55 and 60, depending on when you were born. There are special circumstances where you can access your super early.
A helpful cost of living benchmark prepared quarterly by the Association of Superannuation Funds of Australia (ASFA), shows an average single person needs approximately $595,000 in superannuation before retiring, while a couple requires around $690,000.