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Book a FREE consultation
and receive your complimentary eBook

Get started with a free strategy consultation and receive a copy of the Good Fortune Guide – written by James McFall, Managing Director Yield FP and 2020 National Finalist Certified Financial Planner of the Year to help educate you on your Financial Plan.

What Is The Retirement Age In Australia?

Retirement Planning Successful retirement planning requires your investments to last your entire life after-work, which requires a long term and well thought out structure for you to achieve this.

Some common questions that we hear as financial advisors are “what age am I allowed to retire?” or “what is the retirement age in Australia?”

Currently, there is no legislation that controls when you’re able to retire. This means there is no fixed retirement age in Australia. 

According to the Australian Bureau of Statistics, the average Australian retires at age 55.4, including individuals who have left their last job due to illness, injury, job loss, and other reasons. However, when looking at the average age for retirees who have left the workforce in the last five years, the figure rises to an average of 63 years old.

It is completely your choice to decide when you are ready to give up working. However, there are numerous other variables that are important to consider when discussing what age you should retire. It’s important to prepare yourself financially, so below we have outlined some things you may want to consider.

what is the retirement age in australia

You May Need to Fund a Longer Retirement

One of your main concerns will most likely be the longevity of your finances. This is why the effort that you put into managing your money now will make a large difference in how much you have when you retire.

You might not realise that Australians are now living longer, so you may need a larger sum of money to last you throughout your retired life. 

If you are 65 currently, there is a 50% chance that you will be alive at 95. This means you may need to account for 30 years of retired living.

Your Health May Prohibit You From Working Longer

More often than not, injury, illness, or redundancy may affect your ability to participate in the workforce. This is a key factor that could prevent your potential to accumulate superannuation assets and other savings to fund your retirement.

Research shows that by 2035, one in four men and one in five women in their 60s will have poor or at best, fair health.

So, it’s clear that it’s crucial to begin saving for retirement or contributing to your superannuation sooner rather than later.

what is the retirement age in australia

Retirement May Not Be a One-Off Event

Of retirees who were underprepared for their retirement, 14% said they would have to reenter the workforce in order to fund their financial shortfall.

With good retirement planning, the stress of having to go back to work after being settled in retirement could be eliminated. 

What If I Don’t Have The Funds To Support Myself Throughout Retirement?

Although most of us may dream of retiring early, this may not be your reality.

There are generally two age rules that impact when most Australian’s have the ability to retire, as they allow you to access funds to support your transition to retirement.

These are as follows:

  • Preservation Age – The earliest age where it’s possible in normal circumstances to access your superannuation.

Generally, it’s only possible to withdraw your super after you’ve reached your preservation age, which is between 55 and 60, depending on when you were born. 

We have outlined the preservation ages below for your convenience.

preservation age

Currently, the Age Pension age is 66 years old, however, this could be higher depending on your date of birth. 

We have outlined the Age Pension ages below for your convenience. 

age pension eligibility

What If I Want To Retire Early?

As elaborated on above, there are a lot of variables that may affect your ability to retire early, which is why it’s crucial to begin implementing tactics as early as possible.

Some of the ways that you may be able to ensure a solid income throughout retirement are through strategies such as:

Final Considerations

After reading this article, you should have a deeper understanding and clarity about the retirement age in Australia and how you can prepare your finances for when the time comes.

The years prior to your retirement are an opportunity to add more to your savings and contribute to your superannuation. 

Your super is likely to be a large part of your post-work income, however, it doesn’t need to be your only income. Savings, Government assistance, and investments can also provide alternative financial resources to ensure your comfortability in retirement.

Yield Financial Planning Is Here To Help

Good retirement planning can help you strengthen your financial position. If you don’t know where to begin planning, contact the expert advisors at Yield, to start the conversation about your retirement.

Important Note
Any information provided here is general advice only and does not consider your objectives, financial situation or needs. This information should not be taken as comprehensive and does not constitute legal or financial advice. You should seek legal, financial or other professional advice before relying on any content. Yield Financial Planning is not responsible to you or anyone else for any loss suffered in connection with the use of this information. Information is only current at the date initially published.
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About Yield - Financial Planner Melbourne

Who we serve – We help time poor professionals and business owners who intuitively know they should be doing more to improve their financial position and are seeking an expert to guide them on financial planning strategies. Our clients want personalised financial planning advice and to feel empowered and confident that they can achieve a secure transition to retirement.

What we do – We gain a deep understanding of your current financial position and preferences, what you value and want to achieve. We then help you develop a highly personalised financial plan, to show you how to make your money work harder for you. Ongoing we regularly monitor and measure progress against your plan projections, to show you how you’re tracking and help you manage change to your advantage.

How we do it – We apply our proven expertise in investment markets (Shares & Property), Tax and Debt structuring, Retirement Planning, Risk management and Estate planning, to help you reorganise the way you use your money to achieve your desired outcomes.

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