Retirement age in Australia

Retirement age in Australia looks different for everybody. For some it may be when the Government’s preservation age allows them to access their super - this is currently 60, although there are some exceptions. Others may plan to retire at 67, which aligns with the eligibility age for the Government Age Pension. 

According to the Australian Bureau of Statistics (ABS), the average age at retirement for all retirees in Australia is currently 56 years old. However the average age at retirement has been increasing over the years, with the average age of those who retired in 2022 being 64 years old.¹ 

When you want to retire is, of course, completely up to you and will depend on your personal circumstances. If you were to choose retirement at or around 56, you would want to be confident that your super savings will go the distance to support you throughout your retirement. Or would you need to rely on the Government Age Pension as an additional income source? And would that be enough to support your lifestyle? 

As you approach retirement, it’s important to keep reassessing your financial situation, considering factors like your super balance and other assets and investments. Delaying your retirement by just a few years could give you more time to put more money into super and grow your investments.

Would you prefer to ease into retirement? Semi-retirement could be something to consider. A transition from full-time to part-time work could give you more time for your personal pursuits and interests, but still give you the benefit of maintaining paid employment. If you have a physically demanding job, semi-retirement might be an option worth exploring. 

Deciding when to retire is one of the biggest decisions you’re likely to make in your life. According to the ABS, the average age people intend to retire is currently 65.¹ But life doesn’t always go to plan. Around 13% of retirees had to retire from their last job due to sickness, injury or disability. A further 5% were retrenched, dismissed or were unable to find work, while another 3% stopped working to care for an ill, elderly or disabled person.² 

While there are some considerations around working and retiring that may be out of your hands, there are many factors you can take control of and other things you can plan for.

¹ Australian Bureau of Statistics, Retirement and Retirement Intentions Australia, 2022–23 financial year, www.abs.gov.au/statistics/labour/employment-and-unemployment/retirement-and-retirement-intentions-australia/latest-release 

² Australian Bureau of Statistics, Retirement and Retirement Intentions, Australia, 2022–23 financial year, Table 5 Reasons why retirees ceased last job, www.abs.gov.au/statistics/labour/employment-and-unemployment/retirement-and-retirement-intentions-australia/latest-release