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There is actually no hard and fast retirement age in Australia. For most people, the point at which they call it a day and retire from the workforce is generally determined by a couple of factors:
- The age that you can access your superannuation
- Your qualifying age for the Age Pension from Centrelink
What is the retirement age in Australia?
Let’s start with some of the factors to consider:
In most cases, you must reach your ‘preservation age’ to get your hands on your super. The following table provides your preservation age based on your date of birth.
|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|
Once you reach ‘preservation age’ and have retired, you can access your super.
Jacqui is 56 and was born on 13 January 1958. She has just retired from the workforce and doesn’t intend to work again. She can withdraw from her superannuation, subject to any tax considerations.
If you have reached ‘preservation age’ and are still working, then you may only have limited access to your funds. By limited I mean you may be able to access your super in the form of an income stream, rather than a lump sum payment. The technical name for this is a ‘Transition to Retirement‘ pension where you can receive regular payments from your super while you continue working. You can access up to 10% of your super account balance each financial year.
Jack has reached ‘preservation age’ and has a super balance of $300,000 at 1 July. He can start a Transition to Retirement pension and receive up to $30,000 in pension payments for that financial year.
Once you have reached 65 you have the green light to access your superannuation without any restrictions. You can take it as a lump sum if you want to pay off something big like your mortgage or you can take it as a regular payment or pension.
Find out when you qualify for the Age Pension on the next page…