There isn’t a set retirement age for most individuals in Australia. For many people, the choice of when to retire comes right down to monetary safety.
In reality, there’s even a monetary motion known as FIRE — brief for Monetary Independence, Retire Early — that’s devoted to amassing sufficient cash to retire at an early age.
For many Australians, although, retirement comes later in life. There are two vital ages that sometimes come into play. These are if you find yourself eligible to use for the Age Pension and when you’ll be able to entry your tremendous.
When are you eligible for the Age Pension?
The Age Pension is the primary supply of revenue for a lot of retirees. To use for the Age Pension, you have to be the qualifying age or older. That is at the moment 66 years outdated, nonetheless it can improve to 67 by mid-2023.
| Your birthdate | Your Age Pension age |
|---|---|
| 1 January 1954 to 30 June 1955 | 66 years |
| 1 July 1955 to 31 December 1956 | 66.5 years |
| On or after 1 January 1957 | 67 years |
Supply: Companies Australia
To be eligible for the Age Pension, you’ll additionally want to fulfill the revenue and property assessments and often be an Australian resident who has lived in Australia for a minimum of 10 years.
When are you able to entry your superannuation?
Many Australians additionally retire purchase utilizing tremendous as a supply of revenue. You possibly can entry your tremendous if you retire and attain your preservation age, which is between 55 and 60 years outdated relying on if you have been born.
| Your date of start | Your preservation age |
|---|---|
| Earlier than 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 |
| After 1 July 1964 | 60 |
Supply: Australian Taxation Workplace
In the event you’ve reached your preservation age however haven’t completely retired but, you should still have the ability to entry a few of your tremendous by a transition to retirement revenue stream. Alternatively, you’ll be able to entry it when you attain age 65, even when you’re nonetheless working.
It’s additionally doable to entry your tremendous earlier than you attain your preservation age in some restricted circumstances. Nonetheless, strict guidelines apply.
What’s the common retirement age in Australia?
The typical retirement age has been growing over the previous twenty years. Australians are at the moment retiring when they’re between 62 and 65 years outdated on common, the Federal Authorities’s 2020 Retirement Revenue Evaluate discovered, with ladies tending to retire round one to 3 years sooner than males. That is usually near the time when folks develop into eligible to use for the Age Pension.
It’s anticipated that the common retirement age in Australia will proceed to rise, resulting from will increase to the Age Pension age in addition to components like improved well being and better ranges of schooling, the Evaluate famous. Nonetheless, the financial results of COVID-19 might have combined results on when folks resolve to retire.
If you’re beginning to plan to your retirement, you could need to get assist from a monetary adviser.
Cowl picture supply: Halfpoint/Shutterstock.com