What Is Australia’s Retirement Age for Super & Pension?

Retirement in Australia involves navigating different age-related requirements for accessing personal savings and government benefits. Rather than a single fixed “retirement age,” individuals consider two distinct age milestones: the preservation age for superannuation, which is private retirement savings, and the Age Pension age, which relates to government financial support.

Preservation Age for Superannuation

Superannuation is private retirement savings in Australia. The “preservation age” signifies the earliest point at which these superannuation savings can be accessed. This age depends on birth date, increasing from 55 to 60 years. For those born before July 1, 1960, the preservation age is 55. It reaches 60 for individuals born on or after July 1, 1964.

Accessing superannuation requires meeting a “condition of release” in addition to reaching the preservation age. The most common condition is retiring from gainful employment. Once an individual turns 65, they can access their superannuation regardless of employment status.

There are limited circumstances that permit early access to superannuation before reaching preservation age. These exceptions include situations of severe financial hardship, where individuals cannot meet basic living expenses and have been receiving Commonwealth benefits for a specified period. Access may also be granted on compassionate grounds for specific purposes, such as paying for medical treatment, funeral expenses, or preventing the forced sale of a home. Individuals with a terminal medical condition may also access their super early.

Age Pension Age and Eligibility

The Age Pension is a government-provided social security payment. The “Age Pension age” differs from the superannuation preservation age and has been subject to gradual increases. Currently, the Age Pension age is 67 for individuals born on or after January 1, 1957.

Eligibility for the Age Pension is subject to several criteria beyond age. Residency requirements mandate that an individual has been an Australian resident for at least 10 years in total, with a continuous period of five years. Exceptions and social security agreements with other countries may apply.

Applicants must satisfy both an income test and an assets test. The income test assesses all sources of income, including employment earnings and deemed income from financial assets. The assets test evaluates the market value of most assets owned, though the primary residence is excluded. The amount of Age Pension received depends on whichever test (income or assets) results in the lower payment.

How to Access Your Retirement Funds

Initiating superannuation access involves contacting your fund after meeting the preservation age and condition of release. Super funds require completing forms, providing identity verification documents, and a retirement declaration. Individuals can choose to receive their superannuation as a lump sum payment, a regular income stream, or a combination.

Applying for the Age Pension requires applying through Services Australia. The most common method is through the myGov online portal, though applications can also be submitted in person or by mail. Applicants must provide supporting documents, including proof of identity, residency, and financial information on income and assets.

After submitting an Age Pension application, Services Australia will assess the provided information. After assessment, the applicant receives notification of the outcome. For ongoing payments, recipients must keep Services Australia updated on any changes to their income, assets, or living situation, as these factors can affect their eligibility and pension amount.