While there is no fixed retirement age in Australia, there are a few things you should consider before leaving the workforce such as when you can access your super and the Age Pension.
When you can access your super
When deciding on what age to retire, it's important to understand some of the rules around when you can legally access your super. Generally:
- If you're age 65 or over, you can access your super, even if you're still working1
- If you're over age 59 and under 65, you can access your super as long as you're permanently retired.
If you're under age 65 and born before 1 July 1964, you may be able to access your super earlier.
When you can get the Age Pension
If you don't have enough savings (such as super) to fund your retirement, you could be eligible to get a fortnightly payment from the Australian Government called the Age Pension. When you can start getting Age Pension payments depends on when you were born.
| Date of birth2
|
Age
|
| 1 January 1954 - 30 June 1955 |
66 |
| 1 July 1955 - 31 December 1956 |
66 years and 6 months |
| From 1 January 1957 |
67 |
There are other requirements you need to meet to start receiving the Age Pension.
Average retirement age in Australia
According to the Australian Bureau of Statistics (ABS), the average age at retirement for persons aged 45 years and over in 2018–19 was 55.4 years.
Keep in mind Australians are living longer than ever, with an average life expectancy of 85 years for women and 81 years for men (ABS). Depending on what age you decide to retire, you could need to live off your retirement savings for between 15 to 30 years.
How to decide your retirement age
Here are some questions to ask yourself before you decide when you might like to retire.
How much do you need to retire?
How much you need to retire will depend on a number of different factors – do you plan on travelling the world or heading to the nearest bowls club? Before you decide on a retirement age, think about the kind of lifestyle you want when you finish work.
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Is your super on track?
There are a couple of ways you can check if your super is on target, such as comparing your super balance with the average of other people of the same age, or by looking at the estimated balance you should have at each age to achieve a comfortable retirement.
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Do you have a financial plan?
Deciding what is best for you will depend on your personal circumstances and you may want to seek personal financial advice to get the most from your super. Having a clear plan now can help make sure that you have the best financial future possible.
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Ease into retirement on your terms
If you want to access your super in the lead up to retirement, you may be interested in a transition to retirement (TTR) strategy. A TTR strategy allows you to access part of your super as an income stream while you're still working – giving you the flexibility to enjoy life without reducing your income.
Some of the benefits of accessing your super while working include reducing your working hours, redirecting more of your salary to your super, or spending more quality time doing what you love. Learn more about how a TTR strategy could benefit you.
Retire with a fund you can trust
Our great range of retirement solutions is just one of the many reasons to retire with QSuper products. Find out whether you're eligible to join QSuper.
Transition to Retirement (TTR) Income account
Ease into retirement and enjoy regular payments from your super while you're still working. With flexible payment options, and a focus on long-term returns, see why thousands of members feel confident about transitioning to retirement with us.
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Retirement Income account
Enjoy life after work and turn your super into a regular income with our award-winning Retirement Income account. As your money stays invested, your savings could continue to grow. Find out why thousands of Australians enjoy retirement with QSuper products.
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Lifetime Pension
Enjoy security and confidence in retirement with our Lifetime Pension. It provides an income for the rest of your life, and may even increase your Age Pension payment (if eligible). Find out how you could benefit from this industry-first solution.
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1. If you hold a Defined Benefit account, there are some important considerations before you access your super when you are still working.
2. Source: Services Australia, Australian Government. Accessed 14 January 2020.