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Preparing for retirement

If you’re thinking about retiring soon but you’re not sure how to go about it, here’s what you need to know.

When can I retire?

You can retire at anytime when you stop working completely.

In Australia there is no set age when you have to retire. But if you want to have money to fund your retirement you may consider using your super and the Age Pension to support your lifestyle.

There are also other options to consider, see below: How do I get money to retire?

But before you can access these benefits at retirement you will need to meet two ‘age-based rules’. These are when you reach the earliest of:

  1. your preservation age (which is based on superannuation law), or
  2. when you can apply for the Age Pension (which is based on the Australian Government’s Centrelink/social security requirements).

Your preservation age: This is when you can access your super which is between the age of 55 and 60 depending on when you were born.

If your date of birth isYour 'Preservation' age
Before 1 July 196055
From 1 July 1960 - 30 June 196156
From 1 July 1961 - 30 June 196257
From 1 July 1962 – 30 June 196358
From 1 July 1963 – 30 June 196459
From 1 July 1964 onwards60

Age Pension: This is when you can receive the Australian Government’s Age Pension – provided you are eligible and meet the income test and an assets test. Read more here.

Period within which a person was bornPension ageDate pension age changes
From 1 July 1952 - 31 December 195365 years and 6 months1 July 2017
From 1 January 1954 - 30 June 195566 years1 July 2019
From 1 July 1955 - 31 December 195666 years and 6 months1 July 2021
From 1 January 1957 onwards671 July 2023

Or you can quickly find out more using the Super and pension age calculator.

How much money will I need to retire?

The amount of money you will need depends on whether you want to have a modest or a comfortable lifestyle in retirement. Here’s a quick guide:

ASFA Retirement Standard:Annual living costs:Weekly living costs:
Couple - modest$40,440$775
Couple - comfortable$62,083$1,189
Single - modest$27,987$536
Single - comfortable$43,901$841

Source: ASFA Retirement Standard, September quarter 2020

Or, find out how much money you will need using the ASFA Retirement Tracker Calculator.

How do I get money to retire?

You can:

  1. Set up a Club Plus Super pension – using your super account as an income stream to provide you with a regular tax-effective or tax-free income. You can choose to have a pension while you’re still working or when you have retired.
  2. Access the government’s Age Pension if you are eligible and meet an income test or assets test.
  3. Take your super as a lump sum payment – there are different tax implications with this option depending on your age.

Depending on your situation you may be able to receive a full or part Age Pension as well as your Club Plus Super pension.

Ready to retire?

The idea of never working again and pursuing your post-career dreams might really appeal to you. Find out how to receive a tax-effective income depending on your age.

Read about our Retirement pension.

Not ready to retire fully yet?

Perhaps you want to continue working later in life and just reduce your hours while saving more for your retirement.

Read about our Transition to Retirement pension.

Read about Club Plus Super Pension options.

We’re here to help

If you need more information or help call us on 1800 680 627.