With no definitive retirement age in Australia, the date you exit the workforce will probably come down to personal circumstance and whether you can afford it.
The age you retire in Australia isn’t set in stone. You can really retire whenever you want to, but health, financial commitments and your ability to fund the lifestyle you want will play a big part. 
For this reason, you may want to consider the age you’ll be able to access your superannuation and potentially the government’s Age Pension, which typically won’t be at the same time.
When can I access my super?
Generally you can access your super when1:
-
You reach preservation age and you retire
-
You reach preservation age and implement a transition to retirement strategy
-
You turn 65, whether you remain in the workforce or not.
What is my preservation age?
Your preservation age is the age at which you can start to access your super. It will be between 55 and 60 depending on when you were born. Check out the table below to see what your preservation age2 is.
| 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 |
When you reach preservation age, you have a few options.
If you decide to retire, you can either take your super as a lump sum or use your super to start an income stream (or pension). This type of income stream provides you with a regular income in retirement and you’re not limited to how much you can withdraw.
Alternatively, when you reach your preservation age, you can access a portion of your super under a transition to retirement strategy. This will allow you to access up to 10% of your super through periodic payments while continuing to work full time, part-time or casually.
What about the Age Pension?
Currently, to be eligible for the Age Pension you must be 65 or older.
However, with changes currently afoot, the qualifying age will increase to 65 and 6 months from 1 July 2017. It will then increase by 6 months every two years until 1 July 2023 when it will then be age 67.
You can check out your Age Pension eligibility age below3.
| Date of birth | Age Pension eligibility age |
|---|---|
| Before 1 July 1952 | 65 |
| 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 |
| From 1 January 1957 | 67 years |
One of the reasons for the increase in the Age Pension age is Australia’s ageing population. The government’s 2015 Intergenerational Report projects that in 2054-55 there will be more than double the number of people aged 65 or over in comparison to today, which will create much greater fiscal pressure5.
It’s important to remember that what you do, and at what time you do it, could have tax implications and may impact social security entitlements. For that reason it’s good to do your research and explore your alternatives with a professional.
Please contact us on 07 5443 8312 if you would like to discuss.
Source: AMP May 16th 2016
1 https://www.ato.gov.au/Individuals/Super/Accessing-your-super/
2 https://www.ato.gov.au/Individuals/Super/Accessing-your-super/
3 https://www.humanservices.gov.au/customer/services/centrelink/age-pension
4 https://www.humanservices.gov.au/corporate/budget/budget-2014-15/budget-measures/older-australians/increase-age-pension-qualifying-age-70-years
5 http://www.treasury.gov.au/PublicationsAndMedia/Publications/2015/2015-Intergenerational-Report