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:
- your preservation age (which is based on superannuation law), or
- 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 is||Your 'Preservation' age|
|Before 1 July 1960||55|
|From 1 July 1960 - 30 June 1961||56|
|From 1 July 1961 - 30 June 1962||57|
|From 1 July 1962 – 30 June 1963||58|
|From 1 July 1963 – 30 June 1964||59|
|From 1 July 1964 onwards||60|
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 born||Pension age||Date pension age changes|
|From 1 July 1952 - 31 December 1953||65 years and 6 months||1 July 2017|
|From 1 January 1954 - 30 June 1955||66 years||1 July 2019|
|From 1 July 1955 - 31 December 1956||66 years and 6 months||1 July 2021|
|From 1 January 1957 onwards||67||1 July 2023|
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
How do I get money to retire?
- 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.
- Access the government’s Age Pension if you are eligible and meet an income test or assets test.
- 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.