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Wally David is a Certified Financial Planner® with over a decade of experience in the field of financial planning. He is the founder of thesmartmoney.com.au and regularly appears in the media to comment for news stories, TV segments and other forums.
The Age Pension age is currently 65 for men and women.
Set to increase
The Government has announced in the 2014 Federal Budget that the Age Pension age is set to increase to 70 years of age from 2035. This change will occur in a staggered approach rather than in one swift increase.
From 1 July 2025, the age pension qualifying age will start rising by six months every two years, from 67 years to 70 years by 1 July 2035.
In effect, someone born after 1 January 1966 will not be able to apply for the age pension until 70.
Use the following table to work out your qualifying age.
|Date of birth between ||Eligible at age
|1 July 1952 to 31 Dec 1953||65.5
|1 Jan 1954 to 30 June 1955||66
|1 July 1955 to 31 Dec 1956||66.5
|1 January 1957 and 30 June 1958 |
|1 July 1958 and 31 December 1959 |
|1 January 1960 and 30 June 1961 ||68
|1 July 1961 and 31 December 1962 ||68.5
|1 January 1963 and 30 June 1964 ||69
|1 July 1964 and 31 December 1965 ||69.5
|1 January 1966 and later ||70
This change is bound to impact the potential retirement age of Australians going forward. For most, the Age Pension remains a key part of any retirement plan, even when you have superannuation and other investments. Regardless if you are only entitled to a few dollars in Age Pension, you still qualify for the extra benefits such as discounts on prescriptions, council rates and some other household bills.
Approximately 80% of Australians who have reached Age Pension age receive a full or part Age Pension. As it currently stands, some couples who hold in excess of $1 million in assets on top of their family home are still eligible for a part Age Pension.