Lincoln Financial

When can I retire?

Share |

Back to front page

In Australia there is no official retirement age, so you can choose to retire at any time that suits you.

There is a difference though, between choosing to retire, the age you can access your superannuation benefits and the age at which you are eligible for the Centrelink Age pension.

There are three key ages when considering retirement planning

Age 65 

Preservsation age 

Centrelink age pension eligibility age

Age pension eligibility age 

You can apply for the Centrelink age pension once you attain a certain age, and this is gradually increasing from age 65 to age 67. Eligibility age is based on your birthdate¹:

Birthdate

Age pension eligibility

Before 1 July 1952

65

1 July 1952 to 31 December 1953

65 ½

1 January 1954 to 30 June 1955

66

1 July 1955 to 31 December 1956

66 ½

From 1 January 1957

67

 

Age 65

Your superannuation is preserved within the superannuation system until a ‘condition of release’ has been met, which allows you to access some or all of your benefits. One of these conditions is simply attaining age 65 (regardless of employment status), at which point all of your superannuation will become accessible.

This age is not linked to your age pension eligibility age, meaning even if you cannot access the Centrelink age pension until age 67, you can still start drawing on your superannuation savings from age 65.

Preservation age

Preservation age for superannuation varies depending on your birthdate²:

Birthdate

Preservation age

Before 1 July 1960

55

1 July 1960 to 30 June 1961

56

1 July 1961 to 30 June 1962

57

1 July 1962 to 30 June 1963

58

1 July 1963 to 30 June 1964

59

After 30 June 1964

60

 

[1] Source: https://www.humanservices.gov.au/customer/services/centrelink/age-pension

[2] Source: http://www.austlii.edu.au/au/legis/cth/consol_reg/sir1994582/s6.01.html

 

Once you reach your preservation age as shown in the table above, you can access up to 10 per cent of your superannuation balance each year, in the form of a superannuation pension payment.

Permanently retiring between your preservation age and 60 will also satisfy a condition of release, allowing you to access all of your superannuation benefits.

Once you reach age 60 the requirement is slightly less stringent, and you only need to cease work – not permanently retire - to satisfy a condition of release. Again, this will allow access to your full superannuation balance.

In summary, despite the government increasing the eligibility age for the Centrelink age pension, you can still access your superannuation savings at age 65 (or earlier if you meet another condition of release) and you can actually choose to retire at any age that works for you. Now there’s some motivation to get independently wealthy!

Source: AIA

Back to front page

The information contained in this newsletter is of a general nature only and does not take into account your particular objectives, financial situation or needs. Accordingly the information should not be used, relied upon or treated as a substitute for specific financial advice. Whilst all care has been taken in the preparation of this material, no warranty is given in respect of the information provided. Trident Financial Services Pty Ltd trading as Lincoln Financial ACN 405538083, its directors or staff, shall not be liable on any ground whatsoever with respect to decisions or actions taken as a result of you acting upon such information. Chris Burnett is an authorised representative number 230275 of Libertas Financial Planning Pty Ltd AFSL 429718. Chris Burnett is a Credit Representative Number 399297 and Trident Financial Services Pty Ltd is a Corporate Credit Representative number 397629 of BLSSA Pty Ltd, Australian Credit Licence holder number 391237.

1st Floor, 120 Sussex Street, Sydney, NSW 2000
(02) 9241 6733

Unsubscribe